China Urges Drug Price Check After Pharmacy 40x Markup
China’s National Healthcare Security Administration (NHSA) has issued a public advisory urging citizens to use a newly launched pharmacy price comparison mini-program to avoid overpaying for medications, following a CCTV investigation that exposed a pharmacy in Hohhot, Inner Mongolia, selling a bulk-procurement drug at nearly 40 times its market price.
Background: China’s Bulk Drug Procurement Program
Since 2018, China has implemented a national centralized drug procurement program, commonly known as “Volume-Based Procurement” (VBP), under which the government aggregates demand from hospitals nationwide to negotiate steep price reductions with pharmaceutical manufacturers in exchange for guaranteed purchase volumes. The 11th round of this program, conducted in 2025-2026, included the drug Avatrombopag Maleate tablets, with winning bid prices ranging from 49 to 89.99 yuan per 10-tablet pack — a reduction of over 98% compared to pre-procurement prices of nearly 4,000 yuan.
The Hohhot Incident
On May 30, 2026, CCTV reported that a patient identified only as Mr. Zhang purchased a box of Avatrombopag Maleate tablets (brand name “Qing’anxin”) at Jingyuan Pharmacy in Hohhot for 3,960 yuan. The same drug, produced by Nanjing Chia Tai Tianqing Pharmaceutical Co., was available at other pharmacies and online platforms for approximately 100 yuan. According to the NHSA’s official statement, the pharmacy had “ignored the rules” of relevant agreements and “turned a deaf ear” to price reduction notices from winning-bid enterprises.
Investigators discovered that the drug channel distributor had issued a price adjustment notice as early as March 2026, yet Jingyuan Pharmacy claimed it had not received or implemented the price change. The pharmacy eventually refunded the price difference to the patient after being confronted by reporters.
Regulatory Response
The Hohhot Municipal Healthcare Security Administration, together with the Market Supervision Administration, formed a special task force that conducted an on-site joint inspection of the pharmacy. The pharmacy’s principal was summoned for talks, and market supervision authorities opened an administrative case. Local authorities have pledged to conduct a citywide inspection of newly procured drug pricing and inventory management, with violators facing penalties including医保 payment scoring deductions and potential delisting from the designated pharmacy network.
NHSA Advisory and Price Comparison Tool
On the same day, the NHSA published an article titled “Develop New Habits, Don’t Waste Money,” urging the public to use the pharmacy price comparison mini-program before purchasing medications. The NHSA noted that the mini-program provides transparent pricing, comprehensive drug listings, contact information, and location services for designated pharmacies.
As of January 2026, all 31 provinces, autonomous regions, and municipalities, as well as the Xinjiang Production and Construction Corps, had completed the rollout of the drug price comparison mini-program. Launched by the NHSA in 2024, the tool is accessible via WeChat or Alipay and allows users to compare real-time drug prices, check inventory status, and access one-click navigation to nearby pharmacies.
Expert Analysis
Professor Deng Yong from the Law Department of Beijing University of Chinese Medicine stated that price reductions resulting from policy changes represent operational risks that pharmacies should negotiate with upstream suppliers, not pass on to patients. “Pharmacies cannot transfer all operational risks to patients,” Deng said, as reported by The Paper. He called for accelerated promotion of price comparison mini-programs and intelligent monitoring systems to ensure that drug prices are transparent across hospitals, pharmacies, and online platforms.
Broader Implications
The Hohhot incident has exposed systemic gaps in the enforcement of China’s bulk procurement pricing policies at the retail pharmacy level. Key issues include inconsistent enforcement of pricing regulations, information asymmetry that allows pharmacies to exploit patients’ urgent need for medications, and regulatory ambiguity surrounding drugs classified under “market-adjusted pricing.”
The case is expected to trigger a nationwide inspection campaign of designated pharmacies and accelerate the deployment of AI-powered price anomaly detection systems. It also underscores a broader shift toward consumer-empowered healthcare in China, where digital tools are increasingly enabling patients to make informed purchasing decisions.
What to Watch
Industry observers will be watching for the outcome of the administrative case against Jingyuan Pharmacy, which could set a precedent for how similar violations are handled nationwide. Questions also remain about how many other pharmacies across China continue to sell procured drugs at pre-procurement prices, and whether the NHSA will mandate real-time price synchronization between pharmacies and procurement databases.
As the NHSA’s advisory gains national coverage through Xinhua News Agency, public awareness of the price comparison tool is expected to rise significantly — potentially marking a turning point in China’s efforts to bring transparency to pharmaceutical pricing.