MNCs lef Aseptic valves t out of new drug plan

MNCs lef Aseptic valves t out of new drug plan
Aseptic valves stainless steel ball valve stainless steel ball valve stainless steel ball valve stainless steel cable tie stainless steel coil Stainless Steel Jewelry stainless steel pipe stainless steel pipe stainless steel plate stainless steel seamless pipe stainless steel sheet stainless steel tube stainless steel valve stationery supplies steam trap steam trap Steam Trap steam trap Steel dust Collector
MNCs left out of new drug planPublished: 20 Aug 2009 10:02:02 PST

 

By Li Qiaoyi

The extensive new list of prescription drugs that will enjoy government subsidies may pose some challenges for multinational drug makers. But they’re likely to find new opportunities within the new health scheme, an analyst told the Global Times yesterday.

The Ministry of Health (MOH) released a list Tuesday of 307 essential drugs, part of a new program to ensure most Chinese enjoy a basic level of healthcare.

Drugs on the list will cost much less under the current reimbursement system.

While most of the drugs on the list are reasonable, multinational drug companies tend to focus on the high-end market to reap high profits, said Guo Fanli of Shenzhen Zhongzhe Investment Consulting.

Multinationals spend more resources developing drugs for serious and expensive diseases such as tumors, AIDS, diabetes and hepatitis. They may be concerned with the fact that the essential drugs are generally low-cost medications for common diseases, China Business News said in a report yesterday.

For example, recombinant human insulin, a major product from Novo Nordisk, the world’s largest insulin maker, is not on the list, CBN reported.

However, Guo stated that there are more opportunities for multinational drug makers, as the essential drugs list, part of a 850 billion yuan ($124.42 billion) three-year plan to drastically improve medical care in China by 2011, would to a great extent boost demand.

The list is just the start and more drugs will be added to the list to meet the broad needs of the public, as the program expands, Guo predicted.

According to the plan, 30 percent of State-owned grassroots health institutions would be able to prescribe medicines from the list by the end of the year. An initial essential medicine system would be built up by 2011, and by 2020, the essential medicine system covering all State-owned health institutions would be finally established.

Multinational drug companies will gradually change their marketing strategies. Even as they put special emphasis on pricey drugs, they’ll pay more attention to the low-end market in an effort to get a slice of the low-price market that’s expected to grow, Guo told the Global Times.

At the same time, domestic drug makers face both opportunities and challenges as well.
Drug prices would decline as the government wants them to and demand would increase at the same time. Domestic drug makers are likely to make concessions under the plan, said Guo.

Zheng Hong, a senior official of MOH, said at a news conference in Beijing yesterday that he too believes the new system will be a cause for concern among drug makers and distributors.

China plans to conduct open tenders for essential drugs, which will increase competition among drug makers, Zheng said.

 

 

Explore the World, Understand China!
Please log on www.gloaltimes.cn

現金化 クレジットカード 現金化 比較