Foreign-funded pharmaceutical companies rebate up to 70%, high-level treatment of high price symptoms

2013-07-30 source: international financial news foreign pharmaceutical enterprises have a strong atmosphere of commercial bribery in pharmaceutical sales According to the disclosure of GSK, the cost of promotion and kickback found this time accounts for 20-30% of the total drug price According to a recent survey by Xinhua news agency, the "explicit deduction and hidden deduction" in various links may account for about 50% of the total drug price, and up to 70% of a drug with a cost of only about $5 is sold to patients in China at ten times the price, some of the profits are used to bribe doctors, hospital managers, foundations, etc GlaxoSmithKline (hereinafter referred to as "GSK") commercial bribery event exposed the pricing rules of foreign pharmaceutical companies to the public "Judging from a series of actions in the near future, all departments of the country have strong linkage, plan and pertinence At present, the focus of this time is on commercial bribery and drug price control " A number of medical people interviewed by reporters told reporters In fact, as early as 2006, the pharmaceutical industry launched a large-scale anti commercial bribery action In contrast, this time, it is more targeted and powerful GSK China's top blood exchange GSK case is still in the ferment, and its UK headquarters has made substantial progress in the clean-up of management in China On July 29, relevant PR personnel in China confirmed to reporters that Herve gisserot, the current senior vice president of Europe, will serve as the senior vice president and general manager of GSK's China prescription medicine and vaccine department from September 1, while mark Rui, the current general manager of China, will focus on cooperating with China's investigation According to the personnel change email from Abbas Hussain, President of emerging markets and Asia Pacific of GSK, which was sent to the employees of GSK, entitled "notice on the adjustment of management team of prescription medicine and vaccine Department of GSK in China", the relevant media indicated that Herve gisserot would be handed over to markray at an appropriate time, and he would be stationed in GSK's China headquarters in Shanghai in the near future to provide support to the Chinese team The above people told reporters that at present, China is still in the stage of management, team building and adjustment, so it will take a while for the company's business to recover In addition, the reporter learned from the relevant people that there is a set of "conventional" Reimbursement Mode in GSK, that is, the sales staff can reimburse about 10% of the sales volume in the form of catering expenses and lecture fees according to their performance, which is used to bribe doctors According to the doctor's file, the medical representative of the company can take down the doctor in a regional and targeted way and bribe the doctor according to the quantity of drugs issued by the doctor In terms of research and development, foreign media quoted an internal audit report of GSK, revealing that there may be serious problems in GSK's drug research and development center in Shanghai "The report involves the research and development of drugs for the treatment of multiple sclerosis and motor nerve diseases The person in charge of the research and development project will not know about the relevant animal experiment report until the drug has started human trials." Not only GSK but also other foreign pharmaceutical companies are shocked by the cancellation of foreign enterprise activities First, the Shanghai Office of Belgium pharmaceutical company youshibi welcomed the visit of the industry and Commerce Department, and then AstraZeneca was confirmed to accept the police investigation and evidence collection "Recently, pharmaceutical companies have been frequently investigated or medical representatives have been taken away, which may be routine inspection The industry and Commerce Department and the police are not a system, but in the sensitive period of GSK incident, it is easy for the outside world to connect the two." Yesterday, a senior public relations official of a foreign pharmaceutical enterprise denied to reporters the rumors that his company was under investigation, but revealed that "a lot of pharmaceutical enterprise activities have been cancelled recently." Some insiders pointed out that GSK is in fact "contaminated by mud" The root of the problem lies in being in China's chaotic medical industry In the Chinese market, the contradictions of human relationship, communication cost, legal risk and sales performance are mixed alternately, which makes it difficult for enterprises to "stay out of the water" According to people in the pharmaceutical industry, the external reception of a pharmaceutical enterprise includes public relations companies, travel agencies, conference companies and planning companies In the process of meeting and event undertaking, these organizations may play the role of travel agencies, cooperate with enterprise personnel and get involved in commercial bribery Previously, relevant media also reported that in the potentially complex market of China, the government's supervision or support plays an extraordinary role in the operation of enterprises From the establishment, development, product listing, merger and acquisition, crisis management and other aspects, if the enterprise has the government's "shoulder" to rely on, it can play a multiplier role with half the effort A person who has been in the pharmaceutical industry for many years revealed to reporters that, in fact, the atmosphere of commercial bribery of foreign pharmaceutical companies in the pharmaceutical sales sector is quite strong According to the disclosure of GSK, the cost of promotion and kickback found this time accounts for 20-30% of the total drug price According to a recent survey by Xinhua news agency, marketing rebates may account for about 50% of the total drug price, up to 70% of the total "The confusion in the field of drug sales and the situation of high drug prices are not caused by enterprises unilaterally," said Yan Yesterday, the above-mentioned high-level foreign pharmaceutical companies told reporters that at present, some hospitals with the nature of public institutions, especially public hospitals, have not flexible salary system and low salary Under the pressure of this situation, if any pharmaceutical companies are willing to take risks Such a vicious circle eventually evolved into a stubborn disease of the whole industry Regulators are also aware of these problems and governance has been ongoing Since 2005, the national development and Reform Commission has repeatedly lowered the price of imported drugs, but it has been unable to reach the root After the multi-party game, the state actively reduces the price of some imported drugs by entering the medical insurance, including basic drugs and other preferential conditions, but this will not cure the symptoms In June this year, the national development and Reform Commission organized a cost survey of more than 60 pharmaceutical enterprises, including a large number of foreign pharmaceutical enterprises The purpose is to understand and master the cost, price and relevant information in the process of drug production and circulation, and to formulate and adjust drug prices in a timely manner According to the information of the national development and Reform Commission, the price department of the national development and Reform Commission had a discussion with the person in charge of some medical price information websites to encourage social forces to supervise drug prices "The national development and Reform Commission has carried out the price comparison of these foreign drugs for a long time, and guided the sales prices of these drugs in China by comparing the prices of the same drugs with those of Brazil, India and other countries," said the head of the national development and Reform Commission In addition, last week, the national health and Family Planning Commission also held a special meeting to review and approve the implementation opinions on the special governance work of rectifying unhealthy tendencies in the purchase and sale of medicine and medical services in 2013 The health and Family Planning Commission made a public statement and firmly supported cooperating with the judicial authorities to investigate and deal with commercial bribery cases in the field of pharmaceutical purchase and marketing, and blacklisted the bribery enterprises and individuals identified by the judicial authorities