China Slashes Roche, Bristol-Myers Drug Prices to Curb Health-Care Costs - Bloomberg

China is slashing the price of drugs made by Roche Holdings AG and Bristol-Myers Squibb Co. by about a third, part of government efforts to rein in health-care costs and cool the fastest inflation in two years.

The National Development and Reform Commission highlighted Roche’s antibiotic Rocephin and Bristol-Myers’ heart pill Capoten in announcing new maximum retail prices for 174 medications from more than 60 companies. Prices will be cut by an average of 19 percent on Dec. 12. Health-care stocks in China fell after the announcement, dragging down the CSI 300 Index.

The commission in Beijing said in an urgent notice Nov. 23 that it would lower prices of selected drugs to stabilize costs. China’s pharmaceutical market, the world’s third-largest, is forecast by IMS Health Inc. to expand at least 25 percent next year, spurred by a new $125 billion national health insurance system designed to improve access to medical care.

“As technology advances and the market expands, companies’ operating costs are declining by varying degrees,” the economic planning agency said in a statement. “Hence, the NDRC has decided to reduce the prices of high-price drugs.”

via bloomberg.com

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