Drug price cuts a good remedy

Measures cover a third of Chinese market and trigger price drops by up to 96 percent

China's pilot drug procurement program, covering 11 major cities, will cause pharmaceutical companies to adjust their strategies but will prove beneficial to the sector in the long run, said industry insiders.

Chen Qiaoshan, a medical analyst at Beijing-based market consultancy Analysys, noted: "The pilot procurement will force enterprises to optimize their businesses in technology, research and development, operations and marketing, to lower production costs and improve quality.