China orders drug price cut

Beijing ordered price cuts of up to 56% on antibiotics to bring down health costs in response to consumer complaints about high drug prices. The move, effective June 7, will directly impact profits of domestic and international pharmaceutical companies as well as those of mainland hospitals, which rely heavily on drug sales as an income source. Foreign drug company executives said that the move was intended to put end to bribes paid by wholesalers to hospitals and doctors, but would instead lead to higher consumption and more health insurance payouts.