Business News Agency August 16th, "From a global perspective, value pricing will replace the original method of restricting corporate profits." Lu Fengxia, director of the Drug Development Evaluation Center of the National Development and Reform Commission, held on August 6 The second session of the China Hospital Pharmacy Forum stated.
With the introduction of the concept of "clinical value", the pricing mechanism of pharmaceuticals in China has also changed quietly. Recently, the State Council and the National Development and Reform Commission successively promulgated the "Opinions of the Central Committee of the Chinese Communist Party and the State Council on Deepening the Reform of the Pharmaceutical Health System" and "Opinions on Reforming the Mechanism for the Formation of Prices of Drugs and Medical Services", which emphasizes the importance of "clinical value" as a consideration for pricing. one.
Such thinking is inconsistent with the idea that the "Medicine Price Management Approach (Draft for Soliciting Opinions)" is still dominated by cost pricing, which also means that the basics of China's pricing will undergo a fundamental change.
Although pharmacoeconomics has not been the dominant idea for drug pricing in China, the National Development and Reform Commission has clearly decided to adopt more "pharmaceutical economic" evaluation methods to price it.
According to Lu Fengxia, “With the continuous improvement of medical insurance and the constant use of new drugs and treatment technologies, prices have become the focus of conflict. From the perspective of China’s market construction, the system is still changing, and price conflicts need to be resolved. A reasonable price formation mechanism is very urgent."
New drug pricing questions
In recent years, from the perspective of international management, developed market economies have faced the problem of insufficient capacity to pay. As a result, they have begun to strictly manage prices and enhance the economic evaluation of drugs.
In this regard, Lu Fengxia pointed out: "Pharmaceutical pricing should be value-oriented. Price is a reflection of value, value is derived from use value, and is derived from clinical values. It is mainly reflected in effectiveness, quality controllability, safety, compliance, and convenience. Previously, simply considering the cost, we must now turn to clinical value and gradually establish a value-oriented price formation mechanism.†According to Lu Fengxia, the future “Drug Price Management Measures†will target drug economy for new and alternative medicines. Evaluation pricing, and already listed drug pricing, still follow the original pricing.
The price of new drugs has become a focus issue in China's drug price system. Whether or not new drugs have clinical value has become a concern for health insurance, development and reform commissions, drug administration, and health departments. In recent years, many domestic companies are keen to research and develop a new class of drugs, but the products they launched have not had revolutionary therapeutic value, and they have received higher prices. This new drug is mainly concentrated in chemotherapeutic drugs. At present, the trend of oncology drug research and development in the world is already targeted drugs. Whether or not these drugs have clinical value also becomes doubtful.
Lu Fengxia pointed out: "The price of new drugs determines the price level of follow-up products. What kind of new drugs should be encouraged should be considered by the pricing department. Some new drugs have a new mechanism of action and provide new clinical treatments. This is a major innovation. Some new medicines have made some improvements to existing medicines and added new routes of administration and indications. Therefore, whether new medicines can be obtained at a higher price must be determined based on clinical value, so as to establish a clinical value for the purpose of Research and development oriented."
Eliminating "bad coins drive out good money"
Companies are also concerned about the issue of differential pricing. It has been a cliché that the debate on the individual pricing of the original research drug has been a commonplace. After adopting value pricing, whether or not the clinical value can narrow the spread is also of concern.
Lu Fengxia said: "According to regulations, the price difference between original research drugs and generic drugs that have passed the patent period must reach 30% to 35%, and some spreads should reach several times. This problem must be solved, and clinical economic evaluation must also be adopted. Ways to analyze whether the differences in clinical value and costs are so great."
In addition, quality-level pricing is also the basis of the individual pricing system. In the “Medicine Price Management Approach,†the concept of quality will be further relaxed. The concept of quality will not only be the difference in the quality level specified by the drug administration department, but a large quality concept. .
Talking about the individual pricing system that companies are more concerned about, Lu Fengxia emphasized: “The relevant departments have conducted special investigations, and the differences in the quality of pharmaceutical products in China are still quite obvious. The difference is certainly due to the difference in investment, in terms of supervision. Separate pricing is good for quality improvement."
In addition, under the concept of "big quality", individual pricing will no longer stick to the quality level. In order to reflect the difference between differential pricing and individual pricing, and to solve the phenomenon of “bad money driving out good money†in the procurement process of drug bidding in China, domestic enterprises will be given incentive policies.
According to Lu Fengxia, “Separate pricing can provide some policy support for large domestic companies. However, the development of new drugs in China is very important and domestic companies will still play a major role. Therefore, the NDRC will provide some policy compensation for these enterprises.â€
With the introduction of the concept of "clinical value", the pricing mechanism of pharmaceuticals in China has also changed quietly. Recently, the State Council and the National Development and Reform Commission successively promulgated the "Opinions of the Central Committee of the Chinese Communist Party and the State Council on Deepening the Reform of the Pharmaceutical Health System" and "Opinions on Reforming the Mechanism for the Formation of Prices of Drugs and Medical Services", which emphasizes the importance of "clinical value" as a consideration for pricing. one.
Such thinking is inconsistent with the idea that the "Medicine Price Management Approach (Draft for Soliciting Opinions)" is still dominated by cost pricing, which also means that the basics of China's pricing will undergo a fundamental change.
Although pharmacoeconomics has not been the dominant idea for drug pricing in China, the National Development and Reform Commission has clearly decided to adopt more "pharmaceutical economic" evaluation methods to price it.
According to Lu Fengxia, “With the continuous improvement of medical insurance and the constant use of new drugs and treatment technologies, prices have become the focus of conflict. From the perspective of China’s market construction, the system is still changing, and price conflicts need to be resolved. A reasonable price formation mechanism is very urgent."
New drug pricing questions
In recent years, from the perspective of international management, developed market economies have faced the problem of insufficient capacity to pay. As a result, they have begun to strictly manage prices and enhance the economic evaluation of drugs.
In this regard, Lu Fengxia pointed out: "Pharmaceutical pricing should be value-oriented. Price is a reflection of value, value is derived from use value, and is derived from clinical values. It is mainly reflected in effectiveness, quality controllability, safety, compliance, and convenience. Previously, simply considering the cost, we must now turn to clinical value and gradually establish a value-oriented price formation mechanism.†According to Lu Fengxia, the future “Drug Price Management Measures†will target drug economy for new and alternative medicines. Evaluation pricing, and already listed drug pricing, still follow the original pricing.
The price of new drugs has become a focus issue in China's drug price system. Whether or not new drugs have clinical value has become a concern for health insurance, development and reform commissions, drug administration, and health departments. In recent years, many domestic companies are keen to research and develop a new class of drugs, but the products they launched have not had revolutionary therapeutic value, and they have received higher prices. This new drug is mainly concentrated in chemotherapeutic drugs. At present, the trend of oncology drug research and development in the world is already targeted drugs. Whether or not these drugs have clinical value also becomes doubtful.
Lu Fengxia pointed out: "The price of new drugs determines the price level of follow-up products. What kind of new drugs should be encouraged should be considered by the pricing department. Some new drugs have a new mechanism of action and provide new clinical treatments. This is a major innovation. Some new medicines have made some improvements to existing medicines and added new routes of administration and indications. Therefore, whether new medicines can be obtained at a higher price must be determined based on clinical value, so as to establish a clinical value for the purpose of Research and development oriented."
Eliminating "bad coins drive out good money"
Companies are also concerned about the issue of differential pricing. It has been a cliché that the debate on the individual pricing of the original research drug has been a commonplace. After adopting value pricing, whether or not the clinical value can narrow the spread is also of concern.
Lu Fengxia said: "According to regulations, the price difference between original research drugs and generic drugs that have passed the patent period must reach 30% to 35%, and some spreads should reach several times. This problem must be solved, and clinical economic evaluation must also be adopted. Ways to analyze whether the differences in clinical value and costs are so great."
In addition, quality-level pricing is also the basis of the individual pricing system. In the “Medicine Price Management Approach,†the concept of quality will be further relaxed. The concept of quality will not only be the difference in the quality level specified by the drug administration department, but a large quality concept. .
Talking about the individual pricing system that companies are more concerned about, Lu Fengxia emphasized: “The relevant departments have conducted special investigations, and the differences in the quality of pharmaceutical products in China are still quite obvious. The difference is certainly due to the difference in investment, in terms of supervision. Separate pricing is good for quality improvement."
In addition, under the concept of "big quality", individual pricing will no longer stick to the quality level. In order to reflect the difference between differential pricing and individual pricing, and to solve the phenomenon of “bad money driving out good money†in the procurement process of drug bidding in China, domestic enterprises will be given incentive policies.
According to Lu Fengxia, “Separate pricing can provide some policy support for large domestic companies. However, the development of new drugs in China is very important and domestic companies will still play a major role. Therefore, the NDRC will provide some policy compensation for these enterprises.â€
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