China is home to the world's prominent drug manufacturers, medical device companies as well as health service providers. (Photo : Reuters)
China's National Development and Reform Commission (NDRC) announced its plan to stop taking over the prices of medicines to assist consumers, regulate medical insurance, as well as let the pharmaceutical market play a major role in drug prices, Reuters reported.
The regulation, which will take effect on June 1, aims to cut down the prices of medicine in the market.
"Medicine prices will be market-driven after the government lifts price controls, which means prices will be determined by the law of supply and demand," the commission posted on their online site.
However, drugs like narcotics and some psychiatric medications will be exempted.
Cao Yang, an economics professor at the China Pharmaceutical University, told the Global Times that the pharmaceutical market's takeover could eventually result in cheaper medicines.
According to reports, expensive drug rates have been the cause of complaints from Chinese patients.
Dong Keyong, dean of the public administration and policy school of the Renmin University of China, said that "the government has to simplify the medicine supply chain and break the practice of hospitals profiting from drug sales," as some doctors have been asking shares of profit from medicine manufacturers upon acquisition of drugs.
China is home to the world's prominent drug manufacturers, medical device companies as well as health service providers, Reuters reported.
In 2018, the nation's spending on drugs will reach approximately $185 billion, the news site added.
About 80 percent of drugs in China are sold through health establishments, reported the Global Times.
