China cuts basic medicine prices

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China is lowering prices on more than 2,300 medicines by an average of 12 percent. New pricing goes into effect on October 22nd. The public is welcoming the move to provide more affordable drugs.

According to the National Development and Reform Commission, the price on 45 percent of the essential medicines will go down by 12 percent on average. Prices for about 49 percent will remain unchanged. Prices for about 6 percent now in shortage will be raised moderately to encourage production.

The NDRC says the aim is to reduce the overall prices to benefit consumers and to encourage enterprises to provide quality medicines.

Most of drugs targeted are those frequently-used for common diseases, including colds, fever, inflammation, and high blood pressure, heart disease, diabetes.

Beijing Resident, said, "We certainly welcome the move."

Beijing Resident, said, "It's good. It will benefit ordinary citizens."

A further adjustment involves government-run basic medical and health units. They can no longer sell drugs at a 15 percent mark up. This will mean an overall retail price cut of nearly 30 percent.

The NDRC also requires local price authorities to strengthen supervision on retail drug prices. Violators will be severely punished.

China is lowering prices on more than 2,300 medicines by  an average of 12 percent.