CHINA LEX PHARMA LAW NEWSLETTER
Vol. 2, No. 2 - January 10, 2001
TOPICS THIS ISSUE:
- Shanghai Begins Differential Drug Pricing
- Trans-Genetic Botanical Pharmaceutical Plant to be Built in China
- Changes to Medical Insurance Underway in Hebei
- Most Beijinger’s Prefer the Pharmacy
Shanghai Begins Differential Drug Pricing
Drug prices in Shanghai are now subject to a dual pricing system, a measure intended to further regulate the prices of pharmaceuticals and eliminate overpricing and corruption.
The Shanghai Pricing Bureau published a new administrative regulation on drug pricing stating that as of the beginning of this year, pharmaceutical products will fall under either government-fixed prices or market-adjusted prices.
Drugs listed in the State Basic Medical Insurance List and a few drugs produced monopolistically will be subject to prices fixed by the government. The prices of drugs within the remaining categories will be determined based on market adjustment.
Drug retailers and medical institutions will be permitted to price their products according to retail prices determined by municipal pricing authorities. Prescription drug prices will be subject to approval by the pricing department, however.
Source: SDA
Trans-Genetic Botanical Pharmaceutical Plant to be Built in China
After almost a decade of trans-genetic research, China will soon begin construction on its first trans-genetic pharmaceuticals plant.
Xinguang Corporation, in cooperation with American research institutes, has developed several pharmaceutical products through genetic modification. The process involves transferring medical proteins and enzymes from one plant to another in order to increase its medical benefits.
Potatoes helping to protect against Hepatitis B were developed in conjunction with the University of Michigan, while a cooperative effort between Xinguang and U.S.-based Cubarin has resulted in a type of medlar, also known as the Northern Loquat, that is high in interferon. Interferon, an enzyme produced naturally in humans, aids in boosting the immune system’s ability to fight disease.
Although research has been conducted on trans-genetic products, no findings have been applied to medical products.
The concern in China is that although trans-genetic pharmaceuticals have been accepted abroad, the market here may not be interested. Most consumers appear to be worried about the long-term effects of consuming these products.
Source: Asia Pulse, Xinhua
Changes to Medical Insurance Underway in Hebei
The medical insurance system for Hebei Province is about to undergo some major changes.
Implementation plans for reforms to the insurance system for city and township employees were initiated last month. Reform measures include the transfer of medical and healthcare insurance from public health departments to regional and city departments, and an increase in the number of medical insurance organizations.
Hebei’s provincial department of labour and social security issued ten directives to smooth the implementation of the reform measures, including a clarification of the range of drugs and medical services covered by insurance plans, and a directive covering the management and appointment of medical establishments and retail pharmacies included in the insurance plans.
The drive to increase the number of insurance plans for urban and township employees has been stepped up, with several counties working to quickly establish medical insurance organizations. Insurance premiums were set by provincial authorities, while labor and social departments began accepting applications for coverage.
As of 1 January 2001, employees covered by the insurance plans can obtain medical services at designated hospitals.
The implementation stage lays the foundation for the eventual establishment of a province-wide medical insurance scheme.
Source: SDA
Most Beijinger’s Prefer the Pharmacy
According to a recent survey by the State Drug Administration, most Beijingers head for the pharmacy when they need medicine.
Residents from eight districts in the capital were surveyed on their drug-buying patterns.
More than half of those surveyed purchased their pharmaceutical products from pharmacies last year.
Topping the list of were cold and flu remedies, purchased by over 80% of families. Other drugs included anti-pyretics and analgesics (51.4%) cough medication and expectorants (36.8%) and medicine for gastrointestinal maladies (33.9%)
Source: SDA
Lehman Lee & Xu
China Lawyers, Notaries, Patent, Copyright and Trademark Agents
(formerly known as the L&A Law Firm)
Suite 188, Beijing International Club
21 Jianguomenwai Dajie, Beijing 100020 China
Tel.: (86)(10) 6532-3861
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mail@chinalaw.cc
http://www.chinalaw.cc/
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