Sweeping China Policy Reforms Seen Bolstering Domestic Generics

Off-patent original drugs in China are set to face unprecedented competition as the country drives up policy support for high-quality, bioequivalent domestic generics, and outlines other sweeping moves covering pricing and compulsory licenses.

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A new wide-ranging circular issued on Feb. 9 by China’s Cabinet, the State Council, outlines a number of fundamental policy changes, including the allowance of substitution of original branded but genericized drugs with high-quality, bioequivalent domestically manufactured generics, which will also be prioritized in hospital procurement processes.

Not only will local generics be interchangeable for original brands, the generics themselves will also face less competition in simplified...

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