Drug pricing probes pressure companies

June 21, 2016 | BY

Katherine Jo &clp articles

China's antitrust regulator has launched an official investigation campaign to unravel the complex supply and distribution networks of drugs and medical devices. Healthcare firms will need to ensure proper pricing conduct and prepare for the surveys and raids

The National Development and Reform Commission (NDRC) has formally launched a nationwide pricing investigation into China's pharmaceutical and medical devices industries.

The campaign, announced through the May 22 Circular on the Launch of a Dedicated Nationwide Review on the Pricing of Pharmaceuticals (Circular), runs from June 1 to October 31, 2016.

“The NDRC wants to gain an in-depth understanding of the entire value chain all the way from the manufacturer to the patient,” said Lewis Ho, Hong-Kong based partner and head of Dechert's Asia life sciences practice. “It's not only targeting the drug makers, but also inspecting hospitals, distributors, procurement platforms, research institutions, industry associations and trade organizations—basically everyone involved in the sector.”

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