Communist China Adopts Free Market Medical Costs Strategy

China embraces competitive bidding instead of price fixing?………….A free market approach in a communist country?…………………….Mao Zendong must be rolling over in his grave these days……………..Meanwhile back in the United States Cloned Zendong’s move forward pushing their Cultural Revolution with fervor……………..

Solving China’s Drugs-Price Problem Is Hurting Drug Makers

A pilot program aimed at lowering generic drugs prices has hammered pharma-sector stocks in China

By Jacky Wong The Wall Street Journal

Just as in the U.S., expensive prescription drugs have long been a headache in China. Government insurance usually doesn’t cover the full price of drugs for patients, so many have to pay a hefty portion out of their own pockets, especially those with serious diseases.

In its latest bid to lower medicine costs, the Chinese government recently asked drugmakers to bid for the right to supply hospitals in 11 major cities, including Shanghai and Beijing. The winners will be those willing to accept the lowest prices. Hospitals are the biggest buyers of drugs in China, accounting for 68% of the $200 billion market, according to health-data company Iqvia.

Judging by the tender results announced Thursday, the plan seems to have worked—at least from the government’s point of view. Bid winners cut their drugs prices by 46% on average, with some taking cuts of more than 90%, according to Credit Suisse. The tender comprised 31 off-patent drugs, including Atorvastatin, the generic version of Pfizer ’s cholesterol medication Lipitor

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