China has not yet recognized the importance of increasing generics use as a method to reduce drug prices. An analysis of drug prices in hospitals in the Chongqing province in China has shown that there are potentially major savings to be made by increasing the volume of generics used in China [1].
In China, hospital physicians prescribe and dispense drugs. This means that every hospital has had its own pharmacy, dispensing more than 80% of China’s total medicine consumption; the remaining 20% of medicine is distributed by community drug stores. Drug prices for hospital procurement are determined by a tender process in each province and municipality and there are therefore price variations in each district.
The prices for 12 products from the three most prescribed drug groups in cardiovascular medicines were studied. These included calcium channel blockers with mainly vascular effects, sartans and statins. For all 12 brand-name drugs, generics were available.
In contrast to the trend in many other countries, the market share for volume of generics in Chongqing province, China was found to have decreased from approximately 50% in 2006 to approximately 35% in 2011. By value, the market share of generics decreased from approximately 35% in 2006 to approximately 30% in 2011, see Table 1.
Table 1: Market shares of originator and generic cardiovascular drugs from 2006 to 2011 in Chongqing province, China [1]
The price of originator drugs was found to be 63% higher than generics. The potential savings from generics substitution of the 12 originator drugs studied for this one province alone for 2011 were estimated at 4.19 million Chinese Yuan Renminbi (Euros 500,000), assuming 66% originator utilization.
The authors concluded that, based on the results of this study, China’s healthcare policymakers should take comprehensive measures from supply and demand sides to promote the use of generics.
Conflict of interest
The author of the research paper [1] declared that there was no conflict of interest.
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Reference
1. Zeng W. A price and use comparison of generic versus originator cardiovascular medicines: a hospital study in Chongqing, China. BMC Health Serv Res. 2013;13:390. doi: 10.1186/1472-6963-13-390.
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