China Launches Drug Prices Inquiry

China has announced that it is launching an inquiry on the drug prices that have been set by manufacturers, both foreign and domestic. The inquiry is in line with the government’s efforts to lower the costs of medicines in the country.

The government has a mandate to set a price ceiling for hundreds of drugs being marketed in the country.

The Chinese government has also been facing increasing pressure to contain the cost of living in the country. An infant formula supplier recently cut the prices of its products after facing an inquiry on price-fixing.

NestleSA, meanwhile, announced that it is cutting the prices of its infant formula products by an average of 11 percent. Other milk companies also said they are cooperating with the investigation on price-fixing.

Several employees of GlaxoSmithKline were also detained last week in Changsha for “unspecified economic crimes.” No further details have been revealed.

The China Business News said the government is looking into the costs that come with “development of drug price adjustments.”