China: Signals more antitrust scrutiny for drugmakers over prices

Chinese regulators are closely examining the pricing methods of local and foreign drugmakers for any antitrust violations, according to a state-run financial newspaper, as the government conducts a wide-ranging campaign to regulate prices of medicines.

Antitrust watchdogs are looking for violations such as price manipulation among competitors or via the distribution chain, according to a report by the Securities Times, which cited a recent speech in Shanghai by Lu Yanchun, deputy head of the National Development and Reform Commission’s price supervision and anti-monopoly bureau.

Some foreign pharmaceutical companies try to prevent generic drugs from entering the market by applying for new patents on old drugs whose original patents are close to expiration, without substantially changing the efficacy of the medicines, Lu said, according to the Securities Times.

R&D-based Pharmaceutical Association Committee, an industry group representing foreign drugmakers did not respond to a request for comment.

Full Content: Bloomberg

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