Drug makers face sweeping distribution overhaul

Apr 6, 2017
China launches a “Two-Invoice System” to simplify the drug distribution chain and reduce prices and corruption in the healthcare sector. The new policy may bring substantial compliance and business model challenges for pharmaceutical companies

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The Chinese government has announced a new policy to fundamentally reduce marked-up prices and corruption in multi-tier distribution chains. The policy effectively requires, under most circumstances, at most only two invoices to be issued throughout the distribution chain, with one from the manufacturer to a distributor, and another from the distributor to the end hospital. Though this applies only to drugs, some provinces reportedly have been implementing similar policies for medical devices.

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