Author(s)

Yuxuan Wei

Corresponding Author

Yuxuan Wei

ABSTRACT

Drug pricing is an important issue concerning human health and social equity. Reasonable and orderly drug pricing mechanism is particularly important for a country’s medical and health care system. A country’s drug pricing mechanism should be adapted to its basic national conditions and economic structure. Since 1984, China has carried out a series of reforms to the drug pricing mechanism, gradually forming the current marketoriented drug pricing mechanism. Based on the theoretical framework of New Structural Economics, this paper proposes an analysis of the current drug pricing mechanism in China from the perspective of viability and endowment structure. The analysis of this paper concludes that pharmaceutical enterprises and public hospitals in China lack the viability under the current drug pricing mechanism, which conflicts with China’s endowment structure.

KEYWORDS

Drug pricing, pharmaceutical economics, new structural economics, viability, endowment structure