{"id":629769,"date":"2026-04-25T10:19:28","date_gmt":"2026-04-25T10:19:28","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/629769\/"},"modified":"2026-04-25T10:19:28","modified_gmt":"2026-04-25T10:19:28","slug":"chinas-landmark-drug-pricing-guidelines-widen-biotech-profit-window-analysts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/629769\/","title":{"rendered":"China\u2019s \u2018landmark\u2019 drug pricing guidelines widen biotech profit window: analysts"},"content":{"rendered":"<p>The State Council, China\u2019s cabinet, has published guidelines on innovative drug pricing that a bank analyst has described as the \u201cmost significant\u201d in a decade, as they aim to reward drug innovation and ease <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/business\/china-business\/article\/3349163\/global-drug-makers-face-pricing-pressure-china-targets-affordable-healthcare?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">pricing tension<\/a> for domestic and multinational pharmaceutical companies.The framework document published this month said patented innovative drugs would be supported through value-based pricing, while the prices of generic drugs would be driven down through market competition and <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/business\/china-business\/article\/3345310\/healthcare-investors-keeping-eye-two-sessions-clarity-drug-pricing?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">volume-based procurement<\/a>.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Under volume-based procurement, the government buys drugs in bulk for public hospitals, putting multinational companies under intense price and competitive pressure.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The policy allows biotech companies to charge higher prices in the private market, including at private hospitals and retail pharmacies, and online.<\/p>\n<p>The document also called for <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/business\/china-business\/article\/3336397\/chinas-new-drug-insurance-lifeline-patients-or-squeeze-big-pharmaceutical-firms?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"nofollow noopener\">commercial insurance<\/a> to play a bigger role in funding innovative drugs.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">\u201cThis provides more profitable channels to innovative drug makers and potentially benefits internet healthcare players, pharmacies and private healthcare services, such as Alibaba Health, Yifeng and Hygeia,\u201d John Yung, head of Asia healthcare research at Citigroup, wrote in a research report released on April 16.<\/p>\n","protected":false},"excerpt":{"rendered":"The State Council, China\u2019s cabinet, has published guidelines on innovative drug pricing that a bank analyst has described&hellip;\n","protected":false},"author":2,"featured_media":629770,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[93101,305099,64,63,3686,512,93104,305098,93098,137,500,10340,33979,305100,305096,305095,236675,305101,305097],"class_list":{"0":"post-629769","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-akeso","9":"tag-alihealth","10":"tag-au","11":"tag-australia","12":"tag-beijing","13":"tag-china","14":"tag-citigroup","15":"tag-cspc-pharmaceutical-group","16":"tag-hang-seng-healthcare-index","17":"tag-health","18":"tag-healthcare","19":"tag-hong-kong","20":"tag-hsbc","21":"tag-hygeia","22":"tag-innovent-biologics","23":"tag-jiangsu-hengrui-pharmaceuticals","24":"tag-national-healthcare-security-administration","25":"tag-simon-kucher","26":"tag-yifeng"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/629769","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=629769"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/629769\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/629770"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=629769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=629769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=629769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}