Summary
China started the cut down the medicine price dramatically for the 21st time in Jan, 2007, and the management board also stated that it will continue to squeeze the medicine price foams for many times. China will continue to cut down the medicine price and strike the commercial bribery in 2007.
Currently, the classification of RX and OTC in China has been finished basically, and the meaning of the medicine management by classification lies in to solve medicine separation and cut down the outlay of the medicine expense. Compared to the developed countries, OTC in China is still in the preliminary period of development, and the market has large potential. It is believed that the medicine classification management will push the rapid development of OTC market.
Reform of Hospital, Medical Insurance and Medicine Circulation improved the medicine concentration, the policy-orientated of moderate concentration of state medicine circulation system will drive the rapid improvement of the medicine circulation market concentration in China, and the trend cannot be reversed. Facing the industry reshuffle, the large-scale medicine business will receive the benefit from it at first.
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