China’s NDRC said to consider lifting price caps on most drugs

(Bloomberg) — China’s top economic planner is considering lifting price caps on most drugs sold in the country, according to a proposal sent to drug industry groups.

The government would let prices be set by the market and impose measures to keep drug costs from spiking, according to the proposal drafted by China’s National Development and Reform Commission and seen by Bloomberg News. The changes would take effect Jan. 1.

China currently imposes price controls on most medicines through caps and other methods such as state-run tenders as it seeks to contain health-care costs. Prices for patented drugs would be determined in negotiations by “multiple parties,” according to the proposal. It didn’t elaborate on how the process would work.