Circular of the National Development and Reform Commission on Issues concerning Improving Price Management of Low-price Drugs

Circular of the National Development and Reform Commission on Issues concerning Improving Price Management of Low-price Drugs

Fa Gai Jia Ge [2014] No.856

April 26, 2014

Local offices of the National Development and Reform Commission and price bureaus of all provinces, autonomous regions, and municipalities directly under the Central Government,

In accordance with the requirements of the Circular on Printing and Distributing the Opinions on Safeguarding the Supply of Low-price Common Drugs (Guo Wei Yao Zheng Fa [2014] No.14) promulgated by eight government departments, including the National Health and Family Planning Commission and the National Development and Reform Commission (hereinafter referred to as the "Commission"), the list of low-price drugs and the issues concerning price management are hereby notified as follows:

Article 1 Improve the price management mode for low-price drugs. For drugs at relatively low average daily costs within the range of current government-guided prices (low-price drugs), the maximum retail prices stipulated by the government shall be cancelled, and within the standards of average daily costs, the specific purchase and sale prices shall be fixed by the producers and operators based on the production cost, market supply and demand, and market competition regarding the drugs.

Article 2 Determine the standards of average daily costs for low-price drugs.
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