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Deep China Price Cuts Reveal Complex Considerations

 
• By Brian Yang

Offering deep price discounts in exchange for inclusion in reimbursement lists is never easy, given companies' need to balance expected benefits in volume gains with their international pricing systems and commercial pressures. But in China the underlying considerations are even more complex, as shown by the latest round of national price reductions for selected drugs.

BEIJING – Despite previous expectations of deep price discounts, the results of China's first ever national negotiations for costly drugs included in reimbursement schemes have still surprised many.

The outcomes, announced on May 20, saw a further big price cut for hepatitis B treatment Viread (tenofovir), developed by...

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