Core Viewpoint - The article highlights the significant price discrepancies of traditional Chinese medicine and chemical drugs in China, particularly in Jilin Province, where the government is taking measures to regulate and adjust these inflated prices [2][3][4]. Price Discrepancies - Jilin Province's public resource trading center lists the price of Jilin Galaxy Pharmaceutical's Niuhuang Shangqing Wan at 198 yuan per box, while the same product is available on e-commerce platforms for around 5 yuan per box, resulting in a price difference factor of 10.88 times [2]. - Similarly, the same company's Liuwei Dihuang Wan is priced at 198 yuan per box on the public trading center, with a price difference factor of 61.88 times compared to the e-commerce price of 5-6 yuan per box [2]. Government Actions - Starting from July, multiple provinces have initiated price governance for certain overpriced traditional Chinese and chemical medicines, requiring companies to adjust their listed prices to reasonable levels [2]. - On July 22, Jilin Province's public resource trading center announced a list of 52 traditional Chinese medicines and 43 chemical drugs with inflated prices, mandating price adjustments [3]. Price Adjustments - As of August 1, 26 out of the 52 overpriced traditional Chinese medicines had their prices adjusted, with some experiencing significant reductions, such as Liao Yuan Yulong Yadong Pharmaceutical's Fufang Danshen Pian, which saw a price drop from 443.5 yuan to 39.93 yuan, a decrease of 91% [3]. - Hebei Shams Pharmaceutical's Shengjing Pian was reduced from 987.8 yuan to 93 yuan, a decrease of 90.59% [3]. Red Mark Management - Certain drugs, including Chongqing Xieran Pharmaceutical's Yuanhu Zhitong Pian and Jilin Galaxy Pharmaceutical's Niuhuang Shangqing Wan and Liuwei Dihuang Wan, have not undergone price adjustments and are managed under red mark pricing due to their prices being more than five times the minimum daily treatment cost in the province [4][6]. Price Variations Across Regions - There are significant price differences for the same drugs across different provinces, with some products showing discrepancies of over 70 times. For instance, the price of Langzhi Group's Shuanghuanglian injection varies from 598 yuan in Inner Mongolia to 124 yuan in Liaoning [7]. - The same company's Xuesaitong injection shows a price of 398 yuan in Inner Mongolia compared to only 5.5 yuan in Liaoning and Hebei, indicating a price difference factor of 72 times [7]. Conclusion - The ongoing price governance and adjustments reflect the government's efforts to regulate the pharmaceutical market and ensure fair pricing for consumers, while also highlighting the challenges posed by significant regional price disparities [2][3][4][7].

Core Viewpoint - The article highlights the significant price discrepancies of traditional Chinese medicine and chemical drugs in China, particularly in Jilin Province, where the prices listed on public procurement platforms are substantially higher than those on e-commerce platforms, prompting government intervention to regulate these prices [1][2][3]. Group 1: Price Discrepancies - Jilin Province's public procurement price for Niuhuang Shangqing Wan is 198 yuan per box, with a price difference multiplier of 10.88 times compared to e-commerce prices averaging 5 yuan per box [1]. - The same province lists the price of Liwei Dihuang Wan at 198 yuan per box, with a price difference multiplier of 61.88 times, while e-commerce prices range from 5 to 6 yuan per box [1]. - The price of Yuanhu Zhitong Pian from Chongqing Xieran Pharmaceutical is listed at 110 yuan, with a price difference multiplier of 117.51 times compared to the lowest daily cost of 0.39 yuan [2]. Group 2: Government Intervention - Starting from July, multiple provinces initiated price governance for overpriced traditional Chinese and chemical medicines, requiring companies to adjust their listed prices to reasonable levels [1][2]. - The Jilin Provincial Public Resource Trading Center reported that 52 traditional Chinese medicines were identified as having inflated prices, with 26 of them adjusting their prices downward [3]. - The price of Fufang Danshen Pian from Liaoyuan Yulong Yadong Pharmaceutical was reduced from 443.5 yuan to 39.93 yuan, a decrease of 91% [3]. Group 3: Price Management - Certain drugs, including Niuhuang Shangqing Wan and Liwei Dihuang Wan, have not adjusted their prices and are managed under red label pricing due to being more than five times the lowest daily treatment cost [3][4]. - The price of Piracetam Injection from Heilongjiang Fuhe Pharmaceutical is listed at 165 yuan, which is 29.57 times the national median price of 5.58 yuan for approved drugs [3][4]. - The price of Xihuang Wan from Shanxi Guangyuyuan Guoyao remains unchanged and is also under red label management due to its high price relative to the lowest daily treatment cost [5][6]. Group 4: Regional Price Variations - There are significant price differences for the same drug across different provinces, with some drugs showing price discrepancies of over 70 times [5][6]. - For instance, the price of Shuanghuanglian Injection from Langzhi Group in Inner Mongolia is 598 yuan, while the same drug is priced at 124 yuan in Liaoning, indicating a price difference multiplier of 119.6 times [6][7]. - The price of Xuesaitong Injection from Langzhi Group in Inner Mongolia is 398 yuan, while the same drug is priced at only 5.5 yuan in Liaoning and Hebei, showing a price difference multiplier of 72 times [7].

Core Viewpoint - A nationwide price governance action for traditional Chinese medicine (TCM) is being implemented across multiple provinces in China, addressing the issue of inflated prices and the pressure it places on medical insurance funds [2][9]. Price Governance Action - Provinces such as Guangxi, Liaoning, Heilongjiang, and Tianjin have announced price governance measures for TCM, with additional provinces like Ningxia, Inner Mongolia, Shanxi, Henan, Hebei, and Jilin also participating [2]. - The governance is a response to the significant price discrepancies and the pressure on medical insurance funds caused by high TCM prices [2][11]. Price Discrepancies - Notable TCM products, including An Gong Niu Huang Wan and Ban Lan Gen Granules, have been identified with price differences exceeding 100 times between various manufacturers [3][4]. - A study indicated that out of 93 high-priced TCM products, only 6 had prices close to their theoretical retail prices, highlighting widespread price inflation [3]. Factors Contributing to Price Differences - Price variations are attributed to differences in ingredients, dosage forms, quality standards, and insufficient market competition, leading to concentrated pricing power among certain products [7][11]. - For instance, the daily treatment cost of An Gong Niu Huang Wan can reach 1,898 yuan in Inner Mongolia, significantly higher than the lowest price available [4]. Regulatory Measures - The National Medical Insurance Administration has initiated measures to regulate high-priced TCM products, requiring provinces to verify and adjust prices by July 31 [9][10]. - Provinces have been instructed to impose penalties on companies that fail to comply with price adjustments, including procurement risk identification and potential suspension of product listings [10]. Impact on Pharmaceutical Companies - The price governance affects various pharmaceutical companies, including well-known listed firms such as Taiji Group and Yabao Pharmaceutical, which are now under scrutiny for their pricing practices [12]. - Companies are expected to adapt to a new pricing model based on cost and efficacy, as reliance on high pricing and marketing strategies may no longer be sustainable [13]. Benefits for Patients - The price governance is anticipated to reduce the financial burden on patients, particularly for commonly used medications for chronic diseases, promoting fairer drug pricing and usage [13]. - Increased price transparency is expected to help regulate prescription practices and reduce the misuse of high-priced medications [13].

Core Viewpoint - The issue of excessively high prices for traditional Chinese medicine (TCM) has not been resolved, as evidenced by recent government actions targeting price adjustments for numerous TCM products across various provinces [1][2][4]. Group 1: Price Governance Actions - The Guangxi Drug Procurement Service Platform announced a price adjustment for 169 high-priced TCMs, requiring companies to complete adjustments by July 30 [1]. - Multiple provinces, including Jilin, Henan, and Jiangsu, have initiated price governance for TCMs, with notable products like An Gong Niu Huang Wan and Ban Lan Gen Granules being included [2]. - Jilin Province identified 52 TCMs with significant price discrepancies, with price differences ranging from 10 to over 117 times the minimum daily cost [2][3]. Group 2: Price Discrepancies and Examples - The price of TCMs is significantly higher compared to chemical drugs, with some products showing price differences exceeding 100 times [2]. - For instance, the price of Yuan Hu Zhi Tong Pian from Chongqing Xieran Pharmaceutical Co. is 110 yuan, with a daily cost of 45.83 yuan, leading to a price difference of 117.51 times the minimum daily cost [2][3]. Group 3: Historical Context and Ongoing Issues - The problem of high TCM prices has been persistent, with a 2009 study indicating that out of 93 high-priced TCMs, only 6 had prices close to their theoretical retail prices [4]. - Factors contributing to high prices include an inadequate pricing mechanism, numerous distribution channels, and commercial bribery in the pharmaceutical sector [4]. Group 4: Regulatory Developments - The National Medical Insurance Administration has initiated ongoing price governance for TCMs, with 28 provinces improving their drug pricing rules [4][5]. - The governance focuses on "average daily treatment costs," with penalties for products exceeding set price thresholds [5]. Group 5: Market Adaptations and Future Strategies - TCM companies are adapting to regulatory changes by exploring new profit avenues outside traditional markets, such as health products and wellness items [8]. - Companies like Li Shizhen and Tong Ren Tang are launching health-oriented products, indicating a shift in focus towards future growth opportunities [8][9].