National Health Commission Reports Price Cuts for 1,714 Anti-Cancer Drugs with an Average Reduction of 10%

Xue Haining, Deputy Director of the Department of System Reform under the National Health Commission, stated at a press conference held on the morning of the 25th that in 2018, the State Council decided to implement zero tariffs on imported anticancer drugs. Special negotiations were conducted for the inclusion of anticancer drugs in the national medical insurance program, resulting in 17 new anticancer drugs being added to the reimbursement list, with an average price reduction of 56.7%. Provincial-level special procurement programs for anticancer drugs were also carried out, leading to price reductions for 1,714 drug products, with an average decrease of 10%.

Addressing the prominent issues in China’s pharmaceutical distribution sector, such as excessive intermediaries and market disorder, Xue Haining stated that the “Two-Invoice System” was introduced for drug procurement by public medical institutions starting in 2017 and was fully implemented nationwide in 2018. By streamlining distribution channels, this policy has gradually standardized market order and increased industry concentration.

Meanwhile, centering on meeting the public’s need for safe and convenient access to medications, we will continue to promote “Internet + pharmaceutical distribution,” advance the coordinated development of online and offline channels, and encourage the provision of “online order, in-store pickup” and “online order, store delivery” services. Some large pharmaceutical distribution enterprises leverage third-party providers to deliver high-quality, efficient services such as pharmaceutical warehousing and logistics, thereby making it more convenient for the public to purchase and use medicines.

Furthermore, the National Medical Products Administration issued the Guiding Opinions on the Construction of an Informatization-based Drug Traceability System, emphasizing the implementation of enterprises’ primary responsibility and achieving “one item, one code; synchronized tracking of item and code,” thereby guiding the establishment of a whole-process traceability system. The Ministry of Commerce has organized the construction of a traceability system for the circulation of traditional Chinese medicine (TCM) materials, covering multiple links including the production areas of TCM materials, trading enterprises, specialized markets, as well as the production, distribution, and usage of TCM decoction pieces, thus providing a traceability basis to safeguard public medication safety.

“In 2018, the State Council decided to implement zero tariffs on imported anticancer drugs. Special negotiations were conducted for the inclusion of anticancer drugs in the national medical insurance reimbursement list, resulting in 17 new anticancer drugs being added, with an average price reduction of 56.7%. Provincial-level special procurement programs for anticancer drugs were also launched, leading to price reductions for a total of 1,714 drug products, with an average decrease of 10%.” After presenting these figures, Xue Haining stated that policies aimed at reducing taxes and prices for anticancer drugs have been gradually implemented and proven effective across various regions. All provinces have fully achieved online procurement listing and inclusion in medical insurance payment coverage, thereby safeguarding patients’ access to necessary medications.

Drug procurement methods have also seen active innovation. Xue Haining stated that, building upon provincial-level centralized drug procurement, certain regions have implemented cross-regional joint procurement and Group Purchasing Organization (GPO) models. Pilot programs for state-organized centralized drug procurement and utilization were launched in 11 cities, including Beijing and Shanghai. The National Medical Products Administration (NMPA), the National Health Commission (NHC), and the National Healthcare Security Administration (NHSA) each issued supporting policies, setting forth specific requirements to ensure the quality of winning bid drugs, facilitate their proper allocation and use, and implement healthcare insurance coverage. The 11 pilot cities subsequently released their implementation plans and fully initiated the pilot work.

Pharmaceutical care is a critical component in promoting rational drug use and ensuring medication safety. Xue Haining noted that to effectively enhance the quality of pharmaceutical care services, the National Health Commission and the National Administration of Traditional Chinese Medicine have issued guidelines on accelerating the high-quality development of pharmaceutical care. These guidelines require all regions to integrate with the advancement of the tiered diagnosis and treatment system, establish a vertically integrated pharmaceutical care service network, and explore long-term prescription management for chronic diseases.

This includes strengthening the construction and management of pharmacy departments in medical institutions, upholding the public welfare nature of public hospital pharmacies, prohibiting the contracting out or leasing of pharmacies, and barring for-profit enterprises from managing public hospital pharmacies. It also involves enhancing the staffing, training, and development of pharmaceutical personnel, fully leveraging the role of clinical pharmacists, strengthening prescription review and evaluation, incorporating evaluation results into the performance assessment indicators for medical institutions, expanding the coverage of clinical pathways, and standardizing clinical medication practices. Key measures include monitoring the use of antibiotics, adjuvant drugs, and nutritional products; publicly naming physicians who issue unreasonable prescriptions and establishing an interview and admonition system; and adopting multiple measures to promote rational drug use and reduce the medication cost burden on patients.

Strict control over drug quality is directly related to the safety of medication use by the public, as well as to the quality and effectiveness of medical services. In this regard, Xue Haining pointed out that to further improve the national essential medicines system, the National Health Commission and the National Administration of Traditional Chinese Medicine issued the 2018 edition of the National Essential Medicines List, increasing the number of drugs from the original 520 to 685. This move aims to promote the preferential procurement and use of essential medicines in medical and health institutions and facilitate the coordination of medication practices between primary and higher-level medical institutions. The National Medical Products Administration has accelerated the consistency evaluation of quality and efficacy for generic drugs. To date, 239 varieties have passed the consistency evaluation. On-site inspections were conducted for 222 varieties applying for consistency evaluation, involving 149 enterprises, to ensure that the application materials are consistent with actual production practices.

Meanwhile, the approval process for new drugs already marketed overseas to enter the domestic market should be accelerated in an orderly manner. A dedicated review and approval pathway shall be established for clinically urgent medicines used to treat rare diseases or prevent and control life-threatening conditions, which have been marketed in the United States, the European Union, or Japan within the past decade but not yet in China. This pathway will significantly streamline the review and approval procedures and shorten the approval timeline.

Furthermore, we will intensify supervision and sampling inspections of drug quality, promptly release inspection results to the public, and publish annual drug inspection reports. We will strengthen monitoring of adverse events related to drugs and medical devices, enhance early warning systems and emergency response mechanisms for drug safety, and urge pharmaceutical manufacturers to continuously improve drug quality.

Reprinted from People's Daily Online, by reporter Yang Di