China's Drug Reimbursement Transition to Support Innovation

credit:

Zijing Yang, Student Fellow, Stanford LLM 2025.

Chinaa€™s national drug centralized procurement policy implemented since 2018 for off-patent drugs.

The Medical Insurance Negotiation leverages the expectation of access to a large patient population to encourage pharmaceutical companies to lower prices for their drug products.

There has been growing concern within the industry that the downward pricing pressure may discourage pharmaceutical companies from investing heavily in research and development.

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