Have you ever thought about the price of a pill from the lab to you? Recently, the office of the state council issued a number of opinions on mechanisms for producing sound drug prices. This heavy-pound document regulates the mechanisms for the formation of pharmaceutical prices from the top-level design. Today, let's talk in depth about how this new deal will affect the market and our lives
Let's review how the drugs are priced. Over the years, the core of our national drug pricing has been two words: control fees. It is to balance the price of medicines, health insurance funds and patient availability. So how do we get there? There are two main approaches:
First move, collect. For example, you're a generic drug, not an original drug, so your cost is relatively low. Then, through centralized procurement, anyone who is cheap can access health insurance. The reduction in the price of medicines and medical equipment has been achieved through centralized procurement, which has benefited the population。
Second move, health-care negotiations. With regard to innovative medicines for major diseases or for better clinical outcomes, health insurance should be negotiated in such a way as to balance, to the greatest extent possible, the individual burden of the patient with the disposable income of urban and rural residents. The benefits of this model are evident in the fact that health-care funds reduce the cost of procurement and make it cheaper for the population to see patients。
As can be seen, we have been constantly optimizing the mechanisms for the formation of drug prices, but there are some difficulties in practice, for example, in balancing the needs of price management in different product categories. In the case of innovative medicines, the r & d cycle is long, often taking years or even more, and the r & d input is very high. It is natural for the pharmaceutical companies to be more motivated to innovate when they wish to be on the market with sufficient returns。
And this reform is about addressing the commercialization needs of innovative drug companies. At the core is the establishment of “market-led drug price formation mechanisms”, which are business-led, price-fixing and diversified. More critically, the opinion makes it clear that, on the basis of real world research and clinical effectiveness, pharmaceutical enterprises can make appropriate price adjustments based on the initial price of medicines. This also constitutes a dynamic validation mechanism for pricing behaviour. With this opinion, there will be a strong boost to the innovation tablet, and the process of “valuation reshaping” will begin。
The paper clearly divides drug pricing into three categories:
High-level innovation medicine: give you high pricing rights, give you price stabilization periods, protect you. Improved new drugs: new ones that are "upgraded" on the basis of old drugs, and your pricing is matched by "the patient benefits." (c) simulation of pharmaceuticals: continue to collect at a fair price。
So let us sum up this reform. For a drug dealer: as long as you have the ability to make good medicine, the state not only allows you to set a reasonable price, but also gives you protection. This gives back to the market the most direct incentive of “prices”。
For our people, generic drugs and generics continue to be cheap and to collect the bottom. Innovative medicines, on the other hand, can be traded to protect this “foreign aid”, and the actual burden may not increase or decrease. More importantly, we'll be able to use the world's best innovative medicine faster。
For the country, the target is “strategic new and emerging industries”. The innovation medicine has been positioned as the “emergency pillar industry”, a document that is “ground-based” for this pillar. A good mechanism that allows good sources of medicines to be constantly created and, ultimately, used by those who need them。
Well, that's all for today. What do you think about this drug price reform? Talk to the comment section。
