Premier Li Keqiang's 李克强 call to reform drug prices will drive half of small- and medium-sized pharmaceuticals producers and sales companies out of the market, says Shi Lichen 史立臣 Dingchen Pharmaceutical Management Consulting Centre.
The pro-transparency 'double receipt' system, which limits pharmaceutical receipts to one from production to distribution, and one from distribution to hospital or retail, will favour direct purchasing from large pharmaceutical companies, says Shi. It will cut out small agencies in the middle of the supply chain that survive on added margins, he adds.
Li's reforms would, however, benefit retail pharmacies, says Shi, as hospitals would be unable to force patients to fill in prescriptions on-site.