This Circular guides the implementation of the policy on drug prices under a single price mechanism, depending on supply and demand and local market conditions. The document stipulates principles for pricing and分级管理药品生产、经营和国家管理部门之间的价格分级管理。
适用范围
Domestic pharmaceutical production and business establishments; units importing drugs from foreign currency sources.
要点
- For imported drugs: finished product prices are based on market acceptance capacity and compared with similar products produced domestically (Article II.A.2).
- Domestic production units proactively set selling prices for items classified according to the Ministry of Health's list, while reporting to the price management authority (Article II.B).
- The Joint Ministries stipulate wholesale prices for certain raw materials and finished products imported from foreign currency sources balanced by the State (Article III.1).
- Production and business units negotiate purchase and sale prices with customers and publish those prices (Article III.2).
- Creating conditions to improve the quality of domestically produced drugs, enhancing import and export to balance supply and demand (Article IV).
🌐 本文件的社会影响
- Stabilizing input prices and creating favorable conditions for the development of the pharmaceutical industry.
- Strengthening competition in drug production and sales, contributing to reducing costs.
- Difficulties may arise in transitioning from a subsidized system to business accounting for units not yet prepared.
- The public will benefit from better quality drugs at reasonable prices.
❓ 常见问题
What should domestic production units do to determine selling prices?
Production units proactively set selling prices for items classified according to the Ministry of Health's list and report to the price management authority (Article II.B).
On what factors are imported drug prices based?
Finished product prices for imports are based on market acceptance capacity and compared with similar domestically produced products (Article II.A.2).
Which raw materials and finished products does the Joint Ministries stipulate wholesale prices for?
The Joint Ministries stipulate wholesale prices for certain raw materials and finished products imported from foreign currency sources balanced by the State (Article III.1).
What reporting obligations do production and business units have?
Production and business establishments must regularly report to the National Price Commission of the Ministry of Health and their supervisory authorities on purchase and sale prices (Article V).
What measures are proposed to implement the new policy?
It is necessary to enhance the effectiveness of the single drug price mechanism, linking production and business operations with market supply and demand, and strengthening management in production and business activities (Article IV).
全文
CIRCULAR
JOINT CIRCULAR NO. 440/TT-LB DATED AUGUST 14, 1989
GUIDELINES FOR IMPLEMENTING PRICES POLICY ON MEDICINE
In order to gradually meet the demand for medicine for the people and create conditions for the pharmaceutical industry to become a developing industry contributing to the state budget.
To implement the spirit of Resolution of the Sixth National Party Congress: "Eliminate forms of subsidy that hinder the implementation of business accounting mechanisms based on reasonable production costs and satisfactory profits, the State will not force prices on products of state-owned enterprises but instead provide direct subsidies to social policy beneficiaries through other means."
To effectively implement the above policy, the Joint Ministry of State Price Committee - Ministry of Health guides specific provisions regarding principles and pricing policies for medicines in the near future as follows:
I. PRINCIPLES
1. Implement a single price mechanism for all subjects, depending on supply and demand and the market of each locality and type of medicine.
2. Accurately calculate input costs, eliminate losses at all stages of production and distribution, gradually eliminate losses in import and export.
3. Prices of medicines must be linked to efficacy, quality, and consumer preferences.
4. Implement a competitive mechanism and bidding process, accept profit and loss but ensure overall balance with profit.
5. Do not use excessively low medicine prices to replace hospital funding and social policy implementation.
6. Protect domestic production.
II. SPECIFIC PROVISIONS
A. For imported medicines.
1. Raw materials.
Based on purchasing power for finished products, establish prices for raw materials, gradually eliminating losses in imports.
Maintain stable raw material prices for six months to one year to stabilize input costs for production.
2. Finished products.
Imported finished products from all foreign currency sources are determined based on market acceptance, taking into account similar domestically produced items.
B. For domestically produced medicines.
Production units proactively build and agree with customers on product prices for items classified according to the Ministry of Health's list, while reporting and registering with price management agencies at all levels about the cost structure of the product and agreed purchase and sale prices.
III. ASSIGNMENT AND CLASSIFICATION
1. The Joint Ministry of State Price Committee - Ministry of Health sets wholesale prices for some major raw materials and finished products, imported from foreign currency sources balanced by the State (specific details will be defined later by both parties).
2. For production and business operations (including central and local levels).
Based on the principles stipulated in Part II, Section B:
- Production facilities agree on selling prices with consumption units and publicize these prices.
- Business entities set selling prices.
- Distribution margins for medicines are agreed upon by first, second, and third-tier companies based on purchase and sale prices.
To implement the new mechanism for medicine pricing policy, social policy implementation will be separately guided by the Ministry of Health and the Ministry of Finance in accordance with the requirements of transitioning the pharmaceutical sector to a business accounting mechanism, combating subsidies.
IV. IMPLEMENTATION MEASURES
- To enhance the effectiveness of the single medicine price mechanism, it must be linked to market supply and demand.
- Create favorable conditions to promote the improvement of domestic medicine quality, strengthen imports and exports, and balance supply and demand in each locality.
- Implement protection policies for domestic production.
V. INSPECTION, AUDIT, AND REPORTING WORK
- Due to limited drug resources and unbalanced supply and demand, all levels need to strengthen inspection and audit work on agreed prices of facilities (registered with price management agencies at all levels) regarding export and import prices and factors forming prices.
Pricing guidance must be flexible, tied to supply and demand and market conditions.
Strengthen management in production, business operations, and imports and exports to reduce production costs and circulation fees, contributing to stabilizing prices in the social market and reducing difficulties for the people.
- Production, business operation, and import-export facilities have the responsibility to regularly report to the State Price Committee - Ministry of Health and their main management agencies on purchase and sale prices.
Transitioning the pharmaceutical sector from a subsidy mechanism to a business accounting mechanism, implementing a single medicine selling price policy, is consistent with economic laws and is an urgent issue raised by the Sixth Plenary Session of the Central Committee (Term VI) Resolution: "The pharmaceutical system and medical equipment need to quickly transition to a business accounting mechanism."
During the implementation of this circular, if any difficulties arise, localities and related sectors need to immediately reflect them to the State Price Committee - Ministry of Health for timely resolution.
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