(Urgent, Ji Jia Ge  No. 2141)
To: Planning and Development Departments and Price Bureaus of each Province, Autonomous Region, Municipal City and Planned City,
In accordance with the Guidelines for Drug Price Administration Reform (hereinafter "Guidelines") issued by SDPC, this List of Drugs Priced by SDPC (attached) is promulgated and you are hereby notified as follows:
1. The following drugs are included in the List of Drugs Priced by SDPC:
(a) drugs in the "A List" of the National Drug List for Basic Medical Insurance (hereinafter "National Drug List")
(b) monopolistic drugs of manufacturers/businesses which are: drugs under patent (referring to drugs under patent or administrative protection) and Class I and II New Drugs; narcotics (including drugs which are regulated as narcotics) which are manufactured and supplied according to state mandated plan and Class I psychiatric drugs; contraceptive drugs and devices which are manufactured according to state mandated plan and purchased uniformly by the government; drugs used in planned vaccination.
2. For all drugs included in this List of Drugs Priced by SDPC, SDPC shall set prices according to the generic name of different dosage forms (including the dosage forms included in the "B List" of the National Drug List and dosage forms not listed in the National Drug List) and different presentations.
3. This List of Drugs Priced by SDPC shall be duly adjusted according to the readjustment of the National Drug List, changes in new drug evaluation and approval as well as market conditions.
4. SDPC shall set and publish the retail prices [emphasis added] of "A List" drugs in the National Drug List and monopolistic drugs under patent and Class I and II New Drugs. The ex-factory prices (or port prices) and wholesale prices of such drugs shall be determined by their manufacturers and distributors. For narcotics and Class I psychiatric drugs, SDPC shall only set and publish the ex-factory prices (or port prices). The wholesale and retail prices of such drugs shall be set by relevant local price administration departments at the provincial level according to the pricing regulations for their distribution as promulgated by the central government, and filed with SDPC. For preventive vaccination drugs and contraceptive drugs and devices which are manufactured, supplied and uniformly purchased by the government according to mandated plans, SDPC shall set and publish corresponding ex-factory prices (or port prices).
5. The prices of Class I chemical drugs, Class I biological products and Class I and II finished dosage forms of TCM shall be determined by their manufacturers during the trial production period, and filed with both SDPC and relevant provincial price administration departments. When such a drug is put into official production, its price shall be reported to SDPC for approval. The prices of patented drugs, Class II chemical drugs and Class II biological products shall be determined by their manufacturers and distributors for the first year of production beginning from the date of approval for manufacture or import and shall be filed with SDPC and relevant provincial price administration departments. Such prices shall be reported to SDPC for approval after one year.
6. The retail prices set by various medical institutions and retail drugstores for "A List" drugs in the National Drug List, and monopolistic drugs under patent and Class I and II New Drugs, shall not be higher than the ceiling prices set by government. All localities, departments, and drug manufacturers and distributors shall strictly observe the prices set by SDPC for narcotics and Class I psychiatric drugs which are manufactured and supplied according to state mandated plans, drugs for planned vaccination, and contraceptive drugs and devices which are manufactured according to state mandated plans and uniformly purchased by the government.
7. Lists of drugs with prices set by government shall be developed and promulgated by the government at the central and provincial levels. Upon the issuance of the List of Drugs Priced by SDPC, price administration departments of each province, autonomous region and municipal city shall, as soon as possible, develop and submit to SDPC for approval a list of drugs with prices set by provincial government according to the principles regarding the scope of drugs which prices shall be set by relevant provincial government. The provincial list shall cover drugs which are not on the List of Drugs Priced by SDPC, including the "B List" drugs and national minority drugs on the National Drug List, "B List" drugs that are selected by local government [within 15% provincial variance], as well as TCM preparations and hospital preparations which should be within the administrative jurisdiction of each province.
8. To ensure the successful implementation of the reform measures related to drug prices, the pricing of "B List" drugs shall be gradually determined by provincial governments. During the period of transition, SDPC shall provide pricing guidelines for "B List" drugs, according to which the provincial price administration departments shall establish local ceiling retail prices and file them with SDPC.
9. To safeguard orderly drug production and distribution, and to maintain the national integrity of the drug market, each locality under provincial administration shall set ceiling retail prices by strictly following uniform pricing principles, methods and procedures according to generic names. Localities shall not set prices for drugs not subject to government pricing. SDPC shall investigate, intervene and handle any illegal price setting cases.
10. In order to maintain the general stability of drug prices and to promote fair competition, price bureaus at all levels shall, according to the Price Law, duly monitor price changes of drugs under free market pricing, and strengthen the administration of drug pricing by manufacturers and retailers.
11. SDPC shall review and reset prices for drugs included in the pricing scope of SDPC. The current prices shall be observed until SDPC officially reviews and sets new prices. For drugs originally but no longer included in the scope of government set prices [See Attachment], government pricing will no longer be in effect.
12. This Notice on the Issuance of List of Drugs Priced by SDPC shall be effective from December 25, 2000.
For "List of Drugs with Prices Set by SDPC", Please click here.