Basic drug prices in China fall 12%

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Prices for almost half of all basic drugs in China have been slashed by 12 percent as part of the latest health reform. The cut-price medicines are helping treat the sting in the hip pocket.

Forty-five percent of common drugs are now cheaper under the plan. Common antibiotic, Azithromycin, has been capped at 18.5 yuan, from its original price of 26.1 yuan. There are other big savings at pharmacies across China.

Pharmacy assistant said, "The price of this popular drug has fallen from 9.8 yuan to 5.8 yuan."

The price cut is welcome news for people who rely on medication. They say it will help ease their financial burden.

"I think it's good news for us. Everyone likes cheaper medicines."

Prices for 49 percent of basic drugs remain unchanged. Most of these drugs are traditional Chinese medicines. Experts say this is partially due to traditional medicine producers' relatively low profit margins.

The National Development and Reform Commission warned it will crack down on pharmacies that fail to pass on the price cuts. First-time offenders face a fine of up to one thousand yuan, while repeated offenders risk losing their license.