Multinational pharmaceutical companies to benefit from new China guidelines: analysts
Document demonstrates government’s ‘commitment to fostering a robust and globally competitive domestic pharmaceutical industry’
Under volume-based procurement, the government buys drugs in bulk for public hospitals, putting multinational companies under intense price and competitive pressure.
The policy allows biotech companies to charge higher prices in the private market, including at private hospitals and retail pharmacies, and online.
“This provides more profitable channels to innovative drugmakers, and potentially benefits internet healthcare players, pharmacies and private healthcare services, such as Alibaba Health, Yifeng and Hygeia,” John Yung, head of Asia healthcare research at Citigroup, wrote in a research report released on April 16.