Jiangsu Provincial Price Bureau to Further Strengthen Drug Price Supervision

Municipal and County Price Bureaus:
In order to reduce the inflated prices of drugs and improve drug pricing behavior, according to the “Notice of the General Office of the National Development and Reform Commission on Further Strengthening the Management of Drug Price” (No. 195 of No. 952 of the National Development and Reform Commission), the General Office of the National Development and Reform Commission on Strengthening Drugs The Supplementary Notice on Issues Concerning Price Management and Other Issues (No. 214 of the National Development and Reform Commission) and the “Government's Formulation of Price Conduct Rules (No. 44 of the National Development and Reform Commission)” are now urging further intensification of matters related to drug price regulation. as follows:
First, strictly implement the drug price policy. The price of drugs included in the scope of government pricing shall be administered in accordance with the authority for drug price management. If the National Development and Reform Commission and the Bureau have already established prices, they shall be implemented at the latest published prices; drugs that fall within the pricing range of the National Development and Reform Commission but have not yet established prices shall be authorized under the authorization of the National Development and Reform Commission. If the National Development and Reform Commission does not establish specific production enterprises, increase indications, implement new quality standards, or implement differential prices such as the poor parity rules, the Office will not accept pricing proposals for such drugs; Requests for price adjustments (including pricing requests for patented drugs) are all subject to approval by the National Development and Reform Commission. Before the country started differential pricing, the Office did not set prices for specific production companies.
The drugs that are not included in the pricing range of the National Development and Reform Commission and the Bureau of the People's Republic of China belong to the market regulation price, and the production and operation enterprises independently set prices without going through any formalities with the price department.
Second, strengthen the review of drug costs. In order to verify the cost of drugs, the government must carefully check the costs, and strictly control the cost of living, especially from the market to the government's pricing of drugs, to conduct a rigorous review of the company's full cost data details, to verify and master the actual ex-factory prices of drugs. Prevent false listing costs and false prices.
Third, a reasonable price. Drug pricing is based on cost and comprehensively considers factors such as drug innovation, quality and efficacy, economic and social development, social affordability, and actual drug purchase and sales prices. The pharmaceutical pricing of pharmaceutical companies in the province is based on the reasonable cost of auditing through cost supervision. The price of medicines that are not normally produced and cannot be subject to cost supervision and inspection is not established in principle. The drug pricing of pharmaceutical companies outside the province is based on the audited price issued by the competent department of origin, and provides the audited cost data and the actual invoice price of the drug. Imported drugs, in addition to providing pricing information and customs declaration materials for the competent authorities of the place of production (ports) price, they should also provide legal sale notes for drugs sold in the European Union, Japan, and other international mainstream markets and in some developing countries (Annex translation).
Fourth, improve the set price adjustment process. In accordance with the requirements of the administration of the law and the online operation of our Bureau's price administrative power, we will further improve the procedures for the price adjustment of drugs. Except for drugs that are able to verify retail prices according to the drug parity-to-equivalent rule, new-priced pharmaceuticals and medicines that are not regulated by the ratio-of-gravity comparison coefficient need to perform cost supervision and examination (provincial companies provide pricing information for production origins or cost monitoring reports), collective research, Formulate programs such as review of programs, review of important drug organizations or experts, collective review, and online public announcements to strengthen management and supervision, listen extensively to opinions from all sectors of society, and maximize scientific, reasonable, objective and fair pricing.
V. Establish a price adjustment mechanism. According to the current status of drug prices and the requirements of the National Development and Reform Commission, the SIPO will conduct a comprehensive review of the provincial drug prices for which the announced prices have been established, and the entire review will be completed before the end of this year. In the future, the Bureau will implement the dynamic adjustment of prices based on the cost of pharmaceutical production, changes in market purchase and sales prices, and the prices of drugs that are successfully bid-winning. The prices of drugs that have been found to have high prices, reflect many aspects of various aspects, and actually trade at prices that deviate significantly from the government's pricing level will be adjusted promptly.
Sixth, to strengthen the investigation and inspection of drug prices. The price departments of various localities must strengthen the monitoring and investigation of local drug prices, and must strengthen the supervision and inspection of the implementation of drug price policies. In particular, they must investigate the actual purchase and sale prices of drugs with large market sales, high unit prices, and various aspects. Inspect and promptly discover and report problems such as excessive fare increase in circulation links and high drug prices. The act of non-implementation of the pharmaceutical government's pricing and stipulating the rate of price increase shall be investigated in accordance with relevant regulations, and typical cases shall be publicly exposed.
July 12, 2010

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