SDRC establishes “Drug Price Evaluation Center”
10/21/2005
State Drug and Reform Commission of China (SDRC) established a new department, Drug Price Evaluation Center, in an attempt to better regulate drug pricing in China. SDRC is facing many criticisms from all angles including the pharmaceutical industry, medical field, and the public for failing to regulate drug prices efficiently.
The responsibilities of the new center is to 1) conducting investigations on production and distribution costs of pharmaceutical products, 2) organizing evaluation of drug pricing setting by SDRC by relevant experts, 3) advising on price setting of specific drug products, 4) helping SDRC research and develop relevant drug pricing policies and regulations, 5) monitoring cost structures of pharmaceutical products in and outside China, and 6) providing consulting services on drug pricing policies.
While this move is generally a positive development showing SDRC’s willingness to make their pricing decisions more realistic and reasonable, the actual contributions the new center can make to the drug pricing decision-making process remains to be seen.
Furthermore, it is unclear and questionable why, how and to whom the center will provide consulting services on drug pricing policies.