A procurement scheme being trialled by the Chinese government,which aims to cut the price of generic drugs, has caused stocks in major pharmaceutical firms to tumble. Through the scheme, multinational pharmaceuticals bid against local firms to supply drugs, with the successful bidder for each drug going on to supply in bulk the entire purchase of that medication for 11 cities. The government is also planning a national health insurance programme and an expansion of its healthcare system.
A procurement scheme being trialled by the Chinese government,which aims to cut the price of generic drugs, has caused stocks in major pharmaceutical firms to tumble. Through the scheme, multinational pharmaceuticals bid against local firms to supply drugs, with the successful bidder for each drug going on to supply in bulk the entire purchase of that medication for 11 cities. AstraZeneca and Bristol-Myers Squibb were the only major firms to beat Chinese copycats, although with prices slashed to such an extent, the scheme did not prove a great win for the local suppliers.