China will slash the price
of more than 240 drugs by 20 percent on average while increasing
the price of about 100 other medicines that are in high demand, the
country's top economic planning body announced on
Tuesday.
This is the 17th cut in the cost of drugs since the
government resumed price controls over some drugs in September,
2005, in an attempt to control soaring health care
costs.
The price cuts directed by the National Development
and Reform Commission (NDRC) will take effect on Friday.
Some drugs in this round of price cuts will be slashed
by as much as 85 percent, saving consumers about 7 billion yuan
(US$900 million), said the NDRC.
"We will continue to lower the cost of overpriced
drugs. We will stop price cuts of low-cost drugs that are widely
used to encourage production and we will properly raise the price
of medicines that are in high demanded and often sold out," said an
unnamed NDRC official, who did not say by how much drug prices will
increase.
The NDRC investigated the difference between the
production costs and retail prices of a number of medicines before
finalizing its price reduction plan.
The NDRC slashed the prices of 67 cancer drugs by an
average of 23 percent in June and cut the price of 32 traditional
Chinese medicines used in cancer treatment by an average of 14.5
percent in November. Those price cuts saved consumers a total of
7.9 billion yuan (US$1.01 billion).
(Xinhua News Agency January 24, 2007)
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