Posted by Michael Wonder on 07 Jan 2019
Pharma firms face shake-up with China’s plan to bulk-buy drugs
2 January 2019 - Pilot programme involves major cities clubbing together to purchase certain medicines, driving down prices.
China’s plan to drive down generic drug prices through a centralised bulk procurement programme is set to redraw the industry by forcing its thousands of small generic drug makers to streamline and consolidate after decades of enjoying outsized profit margins.
“There won’t be a second act for traditional generic drug makers in China,” said Dai Ming, Shanghai-based fund manager at Hengsheng Asset Management.
