On April 14, the General Office of the State Council issued opinions on the formation mechanism of drug prices to serve the development of a unified national market in the pharmaceutical sector, better stimulate market vitality, promote fair competition, and maintain market order.

The move will help to support the high-quality development of the pharmaceutical industry and ensure high-quality and affordable medicines for the people.

To refine drug price policies in key links, work will be done to optimize the initial pricing mechanism for newly marketed drugs, such as innovative drugs, and leverage the guiding role of medical insurance payment standards in drug price formation.

In addition, the price formation mechanism for bulk procurement and the management of online drug listing prices will also be improved.

Relevant entities are encouraged to play a role in drug price discovery, the circular said, and efforts will be made to guide drug prices in key sectors to maintain a reasonable level.

To that end, work will be done to promote diversified payment for innovative drugs and the rational formation of their prices, enhance supply and price stability of drugs in short supply, strengthen the price management of narcotic drugs and psychotropic substances, and regulate pricing behaviors in pharmaceutical raw materials and excipients.

The nation will also strengthen the monitoring of drug prices and promote coordinated management.