China plans 40% price cuts on key drugs

For the second time in two months, we're seeing reports that Chinese officials are planning to lower drug prices.

Could pharma's yellow-brick-road rush into China turn out like Dorothy's trip to see the wizard? Rather than all-powerful drug-market growth, Big Pharma may pull aside the curtain to find a government price-cutter pulling levers.

For the second time in two months, we're seeing reports that Chinese officials are planning to lower drug prices. This time, the National Development and Reform Commission is said to be planing a 40 percent cut on 658 medications, Bloomberg reports. And at least one analyst didn't sound too surprised. "Lowering the drug prices has been and will continue to be a trend," Capital Securities' Li Ying told the news service. "As the government wants to make medical care affordable to everyone, more price cuts are underway."

China slashed prices on a list of branded drugs last month, including some products made by Roche and Bristol-Myers Squibb, saying it would continue to bring down expensive drug prices. And as Bloomberg notes, China's Anhu