From 1990 to 2000, the central government did not impose strict controls on medicine prices. That led to some medicine costing so much that patients complained. The NDRC began adjusting medicine prices in 2001. Shanghai Securities News reported.

Yi Jingming, an analyst at Guotai Junan Securities, said, this is the third time the NDRC adjusted medicine prices this year, and the 5 billion yuan in savings is not a large amount compared to other adjustments. On balance, this would not influence medicine industry too much, he added.

From statistics announced by the NDRC, the total price reduction of western medicine has already reached to 17 billion yuan this year, compared to 4.5 billion yuan in 2001, 3.5 billion yuan in 2004, and 6 billion in last year.

Based on the NDRC's plan, Citi Securities forecasts further price reductions in medicine in the future.

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