Business Club July 25th July 22nd, in accordance with relevant regulations, approved by the Civil Affairs Bureau of the Guangdong Provincial Civil Affairs Bureau, the Guangdong Pharmaceutical Price Association formally announced the establishment. The Guangdong Pharmaceutical Price Association has medical institutions such as the People's Hospital of Guangdong Province and the Affiliated Hospital of Sun Yat-sen University of Medical Sciences, as well as more than 150 member companies of the pharmaceutical production and operation companies such as Guangyao Pharmaceutical Group and China National Pharmaceutical Holdings Co., Ltd.
Guo Fanli, a research fellow in the pharmaceutical industry at China Investment Advisors, pointed out that the purpose of the Guangdong Medicine Price Association is to “promote the price policy of medicine, carry out relevant theoretical research, guide and promote industry self-discipline, and play a good role as a bridge.†In fact, the Guangdong Pharmaceutical Price Association was established. The original intention was to share some of the functions of the domestic price authorities, and it was also a “decentralization†of the rights of the national price authority. In the future, the Association will play an active role in promoting price and regulatory policies and price reform measures.
Guo Fanli pointed out that the establishment of the Guangdong Pharmaceutical Price Association will start in 2009. From the second half of 2009, the domestic medicinal herbs market began to experience a climax of price increases, from drought to floods to earthquake disasters, plus the role of hot money speculation, domestic Chinese medicine The price of wood has gone through an “overall price increaseâ€. By 2010, there were 84% price increases for 537 kinds of Chinese herbal medicines on the domestic market, with an average increase of 109%, and 96 varieties with more than 100% increase. Since March of this year, prices of Chinese herbal medicines have entered the fourth-round peak.
The price hikes in Chinese herbal medicines have exerted great pressure on the production enterprises that use Chinese herbal medicines as raw materials. Under the circumstance that the prices of Chinese patent medicines have not changed, the Chinese patent medicine manufacturers must resort to cutting corners in the raw materials of Chinese herbal medicines in order to obtain profits. This will bring about Great security risks. Therefore, it is very important to improve the mechanism for the formation of healthy Chinese herbal medicines price.
However, the government is obviously overwhelmed in this regard. There are tens of thousands of kinds of Chinese herbal medicines in the country, and thousands of them are commonly found. Although pricing mechanism for medicinal herbs can effectively alleviate the current problem of “virtual†or “deficient†drug prices, the government can do so in the face of such a large variety of medicinal herbs. Only selective use of some of the most commonly used herbs for cost accounting. On the other hand, due to the different levels of economic development in different regions, a medicinal material will also have different prices in different regions.
This is obviously a huge project. Guo Fanli said that after years of development, domestic pharmaceutical industry associations at all levels have brought together a large number of human resources, which is an important force that price authorities can rely on. Therefore, the decentralization of the government's rights this time can make the association play a more active role, but it should be noted that because the association contains many pharmaceutical companies, it is also necessary to pay attention to acts of favoritism and fraud when assessing prices.
Guo Fanli, a research fellow in the pharmaceutical industry at China Investment Advisors, pointed out that the purpose of the Guangdong Medicine Price Association is to “promote the price policy of medicine, carry out relevant theoretical research, guide and promote industry self-discipline, and play a good role as a bridge.†In fact, the Guangdong Pharmaceutical Price Association was established. The original intention was to share some of the functions of the domestic price authorities, and it was also a “decentralization†of the rights of the national price authority. In the future, the Association will play an active role in promoting price and regulatory policies and price reform measures.
Guo Fanli pointed out that the establishment of the Guangdong Pharmaceutical Price Association will start in 2009. From the second half of 2009, the domestic medicinal herbs market began to experience a climax of price increases, from drought to floods to earthquake disasters, plus the role of hot money speculation, domestic Chinese medicine The price of wood has gone through an “overall price increaseâ€. By 2010, there were 84% price increases for 537 kinds of Chinese herbal medicines on the domestic market, with an average increase of 109%, and 96 varieties with more than 100% increase. Since March of this year, prices of Chinese herbal medicines have entered the fourth-round peak.
The price hikes in Chinese herbal medicines have exerted great pressure on the production enterprises that use Chinese herbal medicines as raw materials. Under the circumstance that the prices of Chinese patent medicines have not changed, the Chinese patent medicine manufacturers must resort to cutting corners in the raw materials of Chinese herbal medicines in order to obtain profits. This will bring about Great security risks. Therefore, it is very important to improve the mechanism for the formation of healthy Chinese herbal medicines price.
However, the government is obviously overwhelmed in this regard. There are tens of thousands of kinds of Chinese herbal medicines in the country, and thousands of them are commonly found. Although pricing mechanism for medicinal herbs can effectively alleviate the current problem of “virtual†or “deficient†drug prices, the government can do so in the face of such a large variety of medicinal herbs. Only selective use of some of the most commonly used herbs for cost accounting. On the other hand, due to the different levels of economic development in different regions, a medicinal material will also have different prices in different regions.
This is obviously a huge project. Guo Fanli said that after years of development, domestic pharmaceutical industry associations at all levels have brought together a large number of human resources, which is an important force that price authorities can rely on. Therefore, the decentralization of the government's rights this time can make the association play a more active role, but it should be noted that because the association contains many pharmaceutical companies, it is also necessary to pay attention to acts of favoritism and fraud when assessing prices.
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