China's State Council published guidelines for innovative drug pricing, aiming to reward innovation. The new framework utilizes value-based pricing for patented drugs while driving down generic drug costs.

The State Council, China’s cabinet, has published guidelines on innovative drug pricing that a bank analyst has described as “the most significant” in a decade, as they aim to reward drug innovation and ease pricing tension for domestic and multinational pharmaceutical companies. The framework document published this month said patented innovative drugs would be supported through value-based pricing, while the prices of generic drugs would be driven down through market competition and...