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By: Decision Resources Inc

In: The SAGE Handbook of Healthcare

Chapter 17: The Pharmaceutical Pricing and Reimbursement Environment in China

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The Pharmaceutical Pricing and Reimbursement Environment in China
The pharmaceutical pricing and reimbursement environment in China
Introduction

Given its sizeable population and rapid urbanization, China represents a potentially lucrative market for drug manufacturers. The size of the country makes its position in the worldwide pharmaceutical market difficult to gauge. Currently the ninth largest pharmaceutical market in the world, China's pharmaceutical market is valued at $12 billion, while the Chinese government claims the number is $55 billion. But, among other factors, the lure of marketing drugs in China is tempered by China's pharmaceutical pricing and reimbursement system. Drug prices are largely controlled by the Chinese government, and mark-ups on drug prices at the retail level threaten to make some drugs unaffordable. Insurance schemes as they currently exist vary ...

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