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China Drug-Buying Overhaul Triggers a Flood of Profit Warnings

China’s drive to cut health-care costs is taking a toll on the profits of its drugmakers.

Nearly 70% of the 65 pharmaceutical manufacturers listed in China have flagged they’re likely to report slower profit growth for the first half of this year. That’s the most since 2016, data compiled by Bloomberg show. While some haven’t given reasons for the expected weakness, others have pinned it on Beijing’s zeal in slashing drug prices and curtailing the use of medicines with unclear efficacy.

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