Reflections on Innovative Drug Price Management

Abstract

China's innovative drugs to the market limited by the government-related policies, facing new drug pricing, medical insurance directory, centralized purchasing three checkpoints, of which Development and Reform Commission is responsible for the pricing of new drugs, the Ministry of Health and Social Security is responsible for the directory and Centralized purchasing which determine whether new drugs can enter the hospital for sale. These three checkpoints are the three mountains that press on the drug companies, restricting and compressing the existence of innovative drugs. This has led to low market returns and even the loss of pharmaceutical companies, which have severely hit the enthusiasm of Chinese enterprises in developing innovative drugs. This article analyzes the status of innovative drugs in the market and analyzes the barriers to market based on the impact of new drug pricing, health insurance catalogs and centralized purchasing on the price formation mechanism of innovative drugs, then reflecting and putting forward corresponding suggestions.