CHINA LEX PHARMA LAW NEWSLETTER
Vol. 2 , No. 9- March 15, 2001
TOPICS THIS ISSUE:
- Rules on Human Auxiliary Genital Technology and Spermatozoa Pools Issued
- Drug Prices Lowered in Chengdu
- Weeding Out Small Medicine Companies Necessary to Compete in WTO
Rules on Human Auxiliary Genital Technology and Spermatozoa Pools Issued
China's Ministry of Health recently issued rules on the management of human auxiliary genital technology and rules on the management of human spermatozoa pools, both of which will come into effect as of August 1, 2001.
"Human auxiliary genital technology" refers to medical technology that manipulates the ovum, spermatozoa, fertilized egg or embryo for the purposes of pregnancy. "Human spermatozoa pools" are organizations that collect, test, preserve and supply spermatozoa by utilizing ultra-low temperature freezing methods, for the purposes of treating sterility and preventing hereditary diseases.
Under the new rules, spermatozoa pools will be required to set up in hospitals upon the approval of the Ministry of Health. Also, the use of auxiliary genital technology will not be permitted unless approved by the relevant health administration. Additionally, any sale of ovum, spermatozoa, fertilized eggs or embryos is strictly prohibited.
(Source: Health News)
Drug Prices Lowered in Chengdu
The largest hospital in western China, The Number One hospital attached to Huaxi Medical University in Chengdu, has recently begun to lower the prices of 67 of the drugs it sells, for an average total reduction of 21%.
It is reported that the hospital will continue to reduce the prices of another 600 drugs in one month's time, which may force other hospitals and pharmaceutical manufacturers to do the same. It is estimated that the prices of more than 100 drugs will be cut in half. These activities perhaps mark the beginning of a pharmaceutical price war in some areas of China.
(Source: http://www.sina.com.cn)
Weeding Out Small Medicine Companies Necessary to Compete in WTO
One of the major issues to come out of the national medicine industry conference for the year 2001 was the necessity to eliminate small and inefficient firms from the Chinese pharmaceutical industry. Following the meeting, Shi Wanpeng, deputy chief of the State Economic and Trade Commission, proclaimed that China must rid itself of the "backward and small" medicine enterprises if it is to compete with large international companies once accession into the WTO is realized and protective tariffs are cut in half from 12 percent to 6 or even 5.5 percent.
China currently has more than 6,300 medicine manufacturers and more than 1,600 medicine wholesalers. It is believed that the inefficiencies characteristic of the small firms is impeding the development of China's pharmaceutical industry as a whole by disrupting the normal production and distribution of medicines.
Shi claimed that China must not only weed out such firms but also increase scientific and technological research, lower production costs, and improve product quality in order to stay afloat once the "tidal wave" of competition enters China after WTO accession.
(Source: ChinaOnline)
Lehman Lee & Xu
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The China Lex Pharma Law Newsletter is intended to be used for news purposes only. It should not be taken as comprehensive legal advice, and Lehman, Lee & Xu will not be held responsible for any such reliance on its contents.
