ISA Perspectives – China: International Reference Pricing


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During the past month, some speculation surfaced that China may be moving to launch an international reference pricing scheme. Due to the gravity of this issue, the Global Market Access practice at ISA has published a position paper exploring the scenario, as well as recommendations for China and the pharmaceutical industry.

The publication, led by Cyrus Chowdhury, Vice President of the Global Market Access (GMA) practice at Insight Strategy Advisors, explores details around the potential scenario, which may establish China’s reference markets as India, South Korea and the Philippines.

“China has always been recognized as a high-potential market with its large patient population, expanding healthcare coverage, and capacity for innovation. The fact that China is expected to become the third largest pharmaceutical market in the world by 2013 has only increased investment by multinational pharmaceutical companies,” explains Mr. Chowdhury. “This is clearly an important issue for all pharmaceutical companies, as well as an issue that China should consider very carefully prior to implementation.”

“It is not as much the introduction of international reference pricing that is problematic. This was the next logical step. The surprising part is the set of countries that are being deliberated as reference markets, such as India, South Korea and the Philippines.”

Following a lengthy deliberation of the potential reference pricing scenarios in China, the GMA practice then identified a set of implications for the pharmaceutical industry. The position paper may be viewed by following this link: ISA Perspectives – China: International Reference Pricing

During the next few months, Mr. Chowdhury will be sharing further implications of these ongoing developments during speaking engagements around the world including ISPOR Asia and ISPOR Europe. Interested parties can learn more about this issue by contacting Mr. Chowdhury directly at cyrus.chowdhury@insightstrat.com.

ISA has a global network of market experts who advise on all engagements, as well as an experienced multinational team of consultants headquartered in New York City, with presence in Geneva and Philadelphia. Other practice areas include Commercialization Strategy, Oncology & Specialty Therapeutics, and US Managed Markets.

The Global Market Access practice at Insight Strategy Advisors provides pharmaceutical and biotechnology companies advisory services for maximizing market access across the global marketplace. Engagements include, but are not limited to, pricing and market access assessments, portfolio optimization strategies, partnership due diligence, and NGO facilitation.