With a growth rate of more than 20% per year, the Chinese pharmaceutical market is set to become the third
largest in the world in 2011. A radical healthcare reform package recently unveiled by the government will more
than double public healthcare expenditures from 2009 to 2011. For biopharmaceutical companies competing in
China, future success will depend on a clear understanding of the implications of these reforms.
Questions Answered in This Report
More than 1 billion of China’s 1.3 billion residents now have some form of government-sponsored health
insurance. Which are the most important public health insurance programs? What level of benefi ts do
these programs offer? What changes are planned for the near future?
Prices for international branded drugs in China are generally comparable to prices in some European markets.
How do Chinese prices compare with prices in the United States? Which kinds of drugs have prices
close to, or higher than, U.S. prices?
Hospitals are the dominant distribution channel for prescription drugs in China. Why do hospitals play such
an important role in the healthcare system and the pharmaceutical market? How does the government
plan to exercise stricter control over hospital prescribing in the future?
In the future, a drug’s reimbursement prospects are likely to depend heavily on inclusion in a new national essential
medicines list. How extensive is this list likely to be? How will the healthcare system procure and
use drugs on this list?
Scope
Regulatory structure: key policy decision makers in the Chinese healthcare system.
Organization and funding of the healthcare system: historical perspective, health insurance, organization
of healthcare provision.
Pharmaceutical pricing: historical pricing procedures, standard pricing procedures, premium pricing,
centralized drug tenders, international price comparison.
Reimbursement and cost containment: drug reimbursement, price cuts.
Outlook and implications for the pharmaceutical industry: changes to the health insurance system,
investment in healthcare facilities and professionals, improved quality and range of healthcare
services for patients, new system of hospital funding, overhaul of the pharmaceutical supply system,
challenges and opportunities for drug manufacturers.
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