CHINA —China’s Commerce Minister, Wang Wentao, has assured foreign pharmaceutical firms of “more development opportunities” during a roundtable discussion, according to a statement released by the Ministry of Commerce.
The meeting aimed to address concerns raised by drugmakers who have struggled with government procurement policies that have made it challenging for them to compete in the Chinese market.
Representatives from 12 prominent pharmaceutical companies, including AstraZeneca, Bayer, Merck, Novo Nordisk, Pfizer, Roche, Sanofi, and Takeda, were present at the meeting, as stated in the official announcement.
Foreign pharmaceutical companies have faced difficulties establishing a strong foothold in the world’s second-largest economy.
The Chinese government’s drug procurement program, which compels companies to significantly reduce their prices, coupled with its refusal to approve the use of foreign COVID-19 vaccines during the pandemic, has posed obstacles for these firms.
However, as China continues its efforts toward domestic modernization, Minister Wang emphasized that the country would also create “more development opportunities for foreign-funded enterprises, including the pharmaceutical industry.”
This statement indicates a potential shift in the government’s approach to accommodate international pharmaceutical companies.
Notably, the statement did not mention whether Moderna, which recently announced a billion-dollar deal to research, develop, and manufacture mRNA medicines in China, was in attendance at the meeting.
During last month’s World Economic Forum Summit in Tianjin, Chinese Premier Li Qiang acknowledged the issue of excessively suppressed prices in government procurement.
However, in response to a question from a Merck executive, Li also emphasized the challenges faced by the country’s medical and social security systems, as well as patients who cannot afford exorbitantly high prices for new medications.
Li expressed the need for collective efforts to find a viable solution promptly.
Minister Wang assured participants at the meeting on Wednesday that the Ministry of Commerce would enhance communication channels to address and resolve concerns.
The discussions resulted in 25 specific suggestions to be further pursued.
Previously, pharmaceutical companies had to slash their prices dramatically, sometimes up to 95%, to secure contracts in China’s drug procurement program.
This national initiative involves global pharmaceutical companies and Chinese generic drugmakers competing to sell their products in bulk at public hospitals.
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