Hill & Knowlton International Belgium,
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There are currently two methods of selling drugs in China. One is through the pharmaceutical company itself, in which there are sale representative teams responsible for promoting drugs at end market. The other is through distributors and agents. Foreign companies generally adopt the former method. Some local companies adopt both methods, while the majority of local companies adopt only the latter method.
Since there are middle channels such as general agencies, mid-agencies and drug sourcing centres, some drugs need to go through several channels before arriving at the hospital. Since each channel adds its own fee onto the original price, there has been increasing advocacy for squeezing the mid-channels. Alternative channels such as "online drug sourcing" are currently being tested.
Manipulating the bidding price on medication, accepting financial support from suppliers, providing benefits to doctors via participation in academic conferences and learning activities, etc., are practices that have come under public scrutiny. Bribery of hospitals and the exposure of corruption of the former director of the State Food and Drug Administration, Zhen Xiao-Yu, reflect the urgent need for an honest and transparent healthcare system.
The Chinese government has boosted its supervision of drugs and medical equipment. A series of laws and regulations have been announced, enforced and revised this year, such as the "Regulation of Drug Instructions Leaflet and Label Management" to stop "one drug with multiple names", the first "Management Method for Medicine Recall (manuscript asked for opinion)" in the Chinese market, "Management Method for Drug Registration", "Management Method for Medical Equipment Registration" and "Management Regulation for Medical Equipment Supervision."
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