Overview

Pharmaceuticals account for about 60 per cent of all healthcare-related costs in China (the figures for the US and Germany are eight per cent and 12 per cent respectively). To bring costs down, the Chinese government has instituted a series of reforms such as the establishment of drug formularies or reimbursement lists, price caps and strict marketing and advertisement laws. These restrictive measures are accountable for nearly static sales growth for many multinationals since 1994. However, the market will pick up its momentum quickly as China is facing increasing population, ageing, urbanization and demand for more sophisticated medical treatment. Rules and regulations for the industry are complicated and involve a large number of government bodies at various levels. The Ministry of Health and the State Drug Administration control the registration of foreign drugs and the process requires an extensive amount of application and paperwork. Related legal issues are discussed, followed by a useful directory.

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