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New China Policy Puts Pressure on Drug Distributors to Consolidate

publication date: Jan 26, 2017
China has instituted a "Two-Invoice" system for drug distribution to public hospitals, which is expected to drive retail drug prices lower. Under the policy, each drug is allowed only two invoices: one from the manufacturer to the distribution company, and a second from the distribution company to the hospital. The policy will increase pressure to roll-up distribution networks by eliminating middle operators, a long-standing goal of China's healthcare reforms. At first, the two-invoice policy will apply only to Pilot Program hospitals, but it will become effective across China by 2018. More details....

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