Healthcare Club Event: A brief discussion on Chinese pharma market
For instance, Audrey Lu, speaker on the topic of the ‘two invoice systems’ in pharma distribution first talked about how the State Council has released system rules and policy such as the “two-invoice system” for pharmaceutical distribution that will roll out nationwide in 2018. Then Audrey explained the rules to fill up background information by listing the content and context of rules: the rules will allow a maximum of two invoices between a manufacturer and hospital- each manufacturer will sell to a distributor and that distributor will sell directly to hospitals, eliminating multi-tiered distribution, and will impact all segments in the healthcare industry value chain, to various extends. Audrey also shared general expectation and consequences of actions that all levels of governments will make full efforts to implement the “two-invoice system”, and strengthen the monitoring over the market in order to meet the two-invoice system’s requirements in the short-term. In the end, comments were exchanged that companies which cannot meet the two-invoice system’s requirements will be squeezed out form the market.