China's National Development and Reform Commission (NDRC) issued its 19th medicine price cut plan yesterday, involving 99 antimicrobial drugs.

The average price decrease is 30 per cent, and the biggest drop is 76.8 per cent. Annual savings from the price cut are estimated at 4.3 billion yuan (US$510 million).

Antimicrobial drugs include antibiotics, anti-viral, anti-fungal and anti-parasitic drugs.

This is the second price cut by the Chinese Government this year. On June 1, 67 cancer treatment drugs were given an average price cut of 23 per cent.

The new prices will come into effect next Monday. The commission said on its website that hospitals would be inspected to ensure they are keeping to the new prices.

An official from the commission said that this price cut plan was just the first step. The commission will do more market investigation in the following months and will then issue the final prices.

The previous price cuts have mainly targeted antibiotics.

The soaring cost of medical treatment, mainly caused by the unreasonable drug prices in hospitals, has made many patients in China hesitant to seek medical help.

Drug prices are currently caught in an expensive spiral. Manufacturers and local pricing departments give drugs high prices, which are then jacked up many times higher by wholesalers and retailers. To sell these expensive drugs, these companies often bribe doctors and hospital officials eager to turn a profit.

Source: China Daily