China launches probe into drug pricing

Posted on

Atasteofcreole's Blog

http://www.bbc.co.uk/news/business-23192954

China has launched a wide-ranging investigation into the cost of medicines, probing as many as 60 domestic and international drugmakers.

It comes just days after it started a probe into price fixing of infant milk by foreign companies – a move which has already spurred price cuts.

Foreign firms affected by the latest investigation include GlaxoSmithKline, Merck, Astellas and Baxter Healthcare.

Analysts said authorities were keen to make healthcare more affordable.

“It’s not surprising there’s pressure on these two industries,” said Ben Cavender of China Market Research Group in Shanghai.

He explained that the Chinese consumers’ trust in domestically made products in these segments is very low, amid concerns about safety and counterfeit products.

“That’s driving consumers to spend extra to buy foreign products,” he added.

He said that given the higher prices of foreign products it has become “a social issue” amid concerns that those who can not…

View original post 101 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s