Medicines set for price cut
29 September 2005
The prices of 400 medicines will be cut up to 40% as the government tries to deal with mounting discontent over the rising cost and poor quality of the public healthcare system, state media reported. The National Development and Reform Commission announced it would cap prices on 22 different categories of drugs in what may prove a further blow to pharmaceutical multinationals already facing a tough battle to establish themselves in the Chinese market. High medicine prices have in the past been blamed on profiteering by hospitals which, despite being largely non-for-profit organizations, rely heavily on drug sales.