Posted by Michael Wonder on 21 Jan 2019
China pharma must swallow that jagged little pill called R&D as government slashes profit margins of generic drugs
19 January 2019 - New policy environment demanding cheaper drugs adds pressure to innovate.
China’s pharmaceutical industry – shaken by drastic price cuts from Beijing’s recent pilot roll-out of state hospital bulk purchase open bidding – will need to go through painful restructuring and raise big sums to fund innovation, according to executives.
As Beijing’s pilot reform spreads nationwide to cut prices of drugs and improve their efficacy and safety, companies are under mounting pressure to invest in innovative drugs development and reduce reliance on low profit products that are the same copies of original drugs.
