Aligning with international frontiers to advance pharmacoeconomics R&D in China

China has established itself as a frontrunner in pharmaceutical economics, supported by a network of more than 1,000 specialists advancing medical technology evaluations and regulatory innovations. According to senior researcher Prof. Shanlian Hu, first author of a recent perspective paper published in Pharmacoeconomics and Policy, pharmacoeconomics now plays a pivotal role in modernizing Chinas healthcare system, especially in optimizing medication pricing frameworks and insurance coverage discussions.

"Value-driven pricing models for breakthrough medications have catalyzed transformative progress,” explains Hu. “By aligning costs with therapeutic advantages and population health outcomes, this strategy reconciles affordability concerns with equitable access."

Since 2018, the national health insurance authority has incorporated cost-benefit analyses into drug price negotiations, resulting in an average 60% reduction in medication costs and annual savings of 440 billion yuan. These fiscal efficiencies have enabled the addition of 835 novel therapeutics to state reimbursement plans, substantially improving treatment accessibility.

Evidence demonstrates that volume-based purchasing combined with structured price discussions has curtailed pharmaceutical expenditures, simultaneously securing supplies of critical generic drugs while reallocating funds for cutting-edge therapies.

Notably, bibliometric analysis reveals China's has ascended to become the world' second-largest producer of pharmacoeconomic studies since 2010, with research output growing exponentially. Yet obstacles remain. "Accelerating the adoption of machine learning and real-world evidence systems is crucial for global methodological alignment," Hu notes.

The report further details China's pioneering Category C formulary, set to take effect in 2025, designed to incorporate high-impact treatments through collaborative payment mechanisms.

Leveraging VOSviewer analytics, investigators delineated three strategic priorities: optimizing clinical outcomes, refining expenditure control, and integrating intelligent systems. These approaches target persistent challenges including valuation methodologies for orphan drugs and effectiveness assessments for genetic interventions.

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Contact the author: Shanlian Hu, School of Public Health, Fudan University, Shanghai, China , hushanlian@hotmail.com

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