Local pharmaceutical companies launched a fresh attack on NDRC’s drug pricing policy on “originator drugs”, a specially-created category for off-patent drugs of R&D-based foreign companies, through a number of National People’s Congress (NPC) delegates from the pharmaceutical industry.

One of the leading delegates who challenged this NDRC policy at NPC is Cai Dongchen, Chairman of Shijiazhuang Pharmaceutical Group. He claimed that “foreign drugs” have a market share of 97% at the largest Grade III-A hospitals in Beijing and Shanghai and that most of the leading 100 drug products at these hospitals are "foreign drugs". In addition, he suggested that under the current policies of NDRC, prices of “originator drugs” are set at several times of local generics and in some instances even tens of times. 

Cai’s attack on NDRC won support from other delegates including Liu of Shineway Pharmaceuticals and Prof. Zhong Nanshan, Chairman of China Medical Association, and was cheered by local media.

Local press are generally critical of NDRC’s drug pricing policies on "originator drugs" category, blaming NDRC for the large scale loss of market shares by local companies in major hospitals and for the excessive consumption of highly priced "foreign drugs". Some local press accuses NDRC for destroying the local pharmaceutical industry and portrays the agency’s current drug pricing policy on “originator drugs” as a policy of “national betrayal” and a leading cause of healthcare reform failures in the past.  

Some local press also questioned the rationale of the Chinese government to assign NDRC to set drug prices. In their opinions, NDRC is not accountable for healthcare financing, therefore it can easily be influenced by interest groups without any consequences.

Their views are supported by Zhong Nanshan, a heavyweight figure in Chinese politics and public opinions. Zhong called for the transfer of drug pricing authority to the Ministry of Health from NDRC at the recent NPC session.

Although many popular Western media likes to portray China’s NPC as a rubber stamp, the importance of this institution is in fact rising quickly in recent years. Although it is not yet an effective legislative body as its peers in the West, NPC delegates are making an increasing number of policy proposals with mounting influence on a wide range of Chinese political and social-economic issues.

Challenges from NPC over NDRC’s drug pricing policies delivered the agency a serious blow and exposed it to broad public scrutiny.

Pharma China believes that NDRC is now heavy pressure to review and modify its relevant policies and likely actions include reducing price gaps between “originator drugs” and local generics, or even eliminating the category.