China forms market transaction prices for prophylactic immunization pharmaceutical products such as blood products and vaccines through tendering procurement or negotiation, but still implements original policies for psychotropic substances and narcotic drugs. The reason is that currently the production and distribution of prophylactic immunization pharmaceutical products are controlled strictly, in addition, there is no abuse in clinic with stable prices and market. The control of upper limit standard of daily use cost is still implemented for cheap pharmaceutical products, which is mainly because the price policy forms one relatively independent and complete policy system with bid inviting, use and reimbursement and other policies to promote production and supply of cheap pharmaceutical products.
Demand exceeding supply will continue to exist in the blood product industry in the coming 3 years. The annual demand, as calculated by the Ministry of Health conservatively, can reach 8,000 tons, while the current supply is only about 5,000 tons. The gap is very large and Chinese domestic supply ability fails to meet Chinese domestic demands, so it is still needed to be rely on import for solving the contradiction between supply and demand. However, high industrial growth does not bring high yield for enterprises, products fail achieve marketized pricing depending on the supply-demand relationship. As a result, enterprises are very passive in market competition.
Zhejiang transferred human albumin and other 6 blood products to management system for pharmaceutical products in tension supply for procurement on November 25, 2014. After decontrol of blood product prices, there will be room for price increase due to tension supply.
