China to cut retail prices of medicines

The National Development and Reform Commission (NDRC) announced it will cut the maximum retail prices of some medicines by an average of 19%, a move that the agency said will reduce people’s annual medical expenditures by nearly US$300 million, the Wall Street Journal reported. The NDRC added that its decision was prompted by declining operational costs – a result of technology upgrades and market expansion – and the government’s pledge to reduce the prices of certain necessities to help combat inflation. The price reduction will affect 17 types of commonly used medicines, including antibiotics and medicines used for heart diseases, made by companies including the local subsidiaries of Bristol-Myers Squibb (BMY.NYSE) and Roche Holding (ROG.SIX). The price reduction will take effect on December 12.