NEW LAW AIMS TO REGULATE DRUG PRICES IN CHINA

The Chinese Ministry of Health has announced a new rule mandating that doctors use the generic names of drugs when writing prescriptions, the country's government news agency Xinhua has reported.

The rule aims to eliminate confusion and to prevent doctors from receiving kickbacks from drug companies for prescribing certain brands, the Xinhua article said.

In addition the rule will permit medical institutions to stock at most two different drug companies' versions of the same medication, which the ministry hopes will prevent purchasers from buying only the brands with the most profitable margins, according to the article.

In the past Chinese drug companies have been accused of changing the brand names of their drugs or producing multiple versions of the same drug under different names to evade price controls, according to Xinhua.

Xinhua said the ministry hopes the rule will aid doctors in prescribing patients the most cost-effective medications available.

The rule will go into effect May 1.