China moves to benefit domestic generics industry, report finds

A report from industry analyst GlobalData finds that, in a recent round of reforms, the Chinese State Medical Insurance Administration has introduced measures that would benefit domestic generics companies at the expense of global firms.

The pilot scheme across 11 major cities was designed to lower drug prices, but awarded only two contracts to global companies, with 23 being awarded to local Chinese manufacturers.

As a result of the scheme, the average price dropped by more than half with the highest price reduction being 96%.