China’s investigation into drug pricing: What you need to know

On July 2, the National Development and Reform Commission ("NDRC") announced that it is investigating costs and prices charged by 60 foreign and domestic drug makers. Concerned pharmaceutical manufacturers should be aware that the investigation process imposes certain rights and obligations on the manufacturers and the investigating authorities alike.

The Chinese pharmaceutical pricing regime is primarily governed by the Price Law of the People's Republic of China, the Pharmaceutical Administration Law of the People's Republic of China, the Regulations for the Implementation of the Drug Administration Law of the People's Republic of China, and the Code of Conduct for pharmaceutical pricing.