China Eases Generic Drug Market Shake-Up

Nationwide rollout of generic pricing program will be limited to 25 drugs, for now.

The Chinese government will roll out out a nationwide pilot program it began at the end of 2018, to increase its ability to finance the cost of new drugs,. The program involves the use of a new pricing policy for older, generic medicines known as the tender-and-bid system. The system has lowered the cost of 25 listed generics by up to 90%, impacting both domestic and international pharmaceutical companies. During the pilot program, which was conducted in just 11 cities, the government saved nearly $850 million.

The program, while expanding to the entire country at the end of 2019, will not include any additional generic drugs, as was originally planned. The tender list will remain unchanged and include only the original 25 drugs targeted during the pilot program.


Cynthia A. Challener, Ph.D.

Dr. Challener is an established industry editor and technical writing expert in the areas of chemistry and pharmaceuticals. She writes for various corporations and associations, as well as marketing agencies and research organizations, including That’s Nice and Nice Insight.