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China's Power over the price of drugs

The latest biotech medicines are in the future, come from China. "It's only a matter of time before China ascends to the top," said Roche CEO Severin Schwan in the summer. China is pursuing a master plan that it wants to shit in the next few years, one of the best pharmaceutical companies in the world unlock. For the first time, however, China shows itself as a huge new market for the Western pharmaceutical companies . As it turns out, but as the prices plummet and the global structure begins to falter is likely to bring.

The Chinese leadership wants to spend any large amount of money for drugs. The latest therapies from all over the world want the Land, but at affordable prices. The state has built up in recent years, the health system and health insurance, which cover 95 percent of the population.

Want to get pharmaceutical companies to the reimbursement list for the Chinese basic insurance, you need to negotiate with the state hard. Last week, this Roche and Novartis have done as well as other Western pharmaceutical companies – and so high concessions made like nowhere else. On average, the prices are 61 percent lower than those in the United States. Some top drugs are even cheaper. Compared to Switzerland, the difference is only small.

Up to 90% discount

Roche will make its China fresh negotiated prices are not publicly, as a spokesman says. Novartis, however, already be drug Cosentyx in China costs about 90 percent less than in the United States.

In the United States, it is likely to ferment in the case of health insurers, because the most expensive Drugs are subsidised, even China. Roche refers to your pricing model, "whereby countries with a lower Per capita income, for products, which are included in the reimbursement of the national health system, pay lower prices than countries with higher Per capita income."

Balance of quantity and price

first and foremost, however, it is not the national purchasing power, the price in China is crucial. But the huge sales market. "At the prices China is negotiating hard," said pharmaceutical expert Hültenschmidt by the consulting firm Bain & Company. The company attracts, however, the amount that compensates for the discounted price. China is acting like a discount store, you can press about his sheer Shopping the margins of the manufacturer.

The pharmaceutical expert of the Zürcher Kantonalbank Michael Nawrath, expected that China's price pressure, the impact, although not immediately, but in the future also in the West: "In five to ten years, this is also a big issue." Then, if more expensive new drugs come on the market. "Then other States will question why they are so high prices are to pay, even if they have less population."

First U.S. approval for immunotherapy from China

"in addition to the Size of the country's two systemic Changes in the last few years have made the market attractive," says a Roche spokesperson. The approval time has been greatly shortened. And it is no longer needed, studies in China. The Chinese leadership has created the conditions for the catchment of Western medicines in the first place. The prompt: Roche increased in the first half of 2019 its sales in China to 58 percent to 1.6 billion Swiss francs.

"There are crucial changes in China, for Lonza this is the crucial reason to develop biotech products."Lonza spokeswoman

Even if the country at the Moment, as a new market for the attention: China is going to be the competition. With the immune therapy Brukinsa of Beigene this year, was admitted to the first Chinese medicine in the United States. On 1. December a new law into force, the accelerated approval clinical trials, there was. Patent violations of the new law with significantly higher penalties. In addition, research and development will be promoted specifically.

the establishment of foreign as well as Chinese companies to further boost. "There are crucial changes in China, for Lonza this is the crucial reason to develop biotech products," says a spokeswoman for the Swiss Life Sciences group. Lonza will open in 2020, a new plant in Guangzhou, the biotech medicines for third-party companies to develop and produce. "There are an enormous number of new Chinese biotech companies, for which we want to work with," said the Lonza spokeswoman.

Created: 04.12.2019, 06:09 PM

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