Inner Mongolia Pharmacy Sold Drug at 40x Markup
An investigation by China Central Television (CCTV) and The Paper has revealed that Jingyuan Pharmacy in Hohhot, Inner Mongolia, sold a national centralized procurement drug at 3,960 yuan (US$548) per box — nearly 40 times the market price of approximately 100 yuan — even after suppliers had already lowered prices and compensated the pharmacy for the difference. The case has triggered an immediate regulatory crackdown and raised urgent questions about the enforcement of China’s landmark drug pricing reforms.
The Investigation
The drug in question is Avatrombopag Maleate tablets (brand name “Qing’anxin”), manufactured by Nanjing Chia Tai Tianqing Pharmaceutical Co., Ltd. The medication helps raise platelet levels in the blood and was included in the 11th round of China’s national centralized drug procurement, which took effect in February 2026. Under the procurement program, winning bid prices for a 10-tablet pack ranged from 49 yuan to 89.99 yuan — a reduction of over 98% from pre-procurement prices of nearly 4,000 yuan, according to CCTV’s investigation report.
Patient Mr. Zhang (a pseudonym) in Hohhot experienced sudden health issues and was hospitalized around May 22. His family purchased the drug at Jingyuan Pharmacy, a designated medical insurance pharmacy, for 3,960 yuan. Upon discovering the same medication was available elsewhere for approximately 100 yuan, the family contacted the pharmacy, which subsequently refunded the price difference according to the centralized procurement price.
Supplier Had Already Adjusted Prices
According to documents obtained by investigators, the drug’s channel distributor had issued a price adjustment notice to Jingyuan Pharmacy on March 27, 2026 — two months before the patient’s purchase — lowering the price of existing inventory and providing compensation for the price difference. Yet when confronted, pharmacy staff claimed they were unaware of the price reduction and had not received any notice, a claim contradicted by the supplier’s documentation.
As reported by The Paper, the Hohhot Medical Security Bureau and Market Supervision Bureau formed a special task force on May 30, conducted an on-site inspection, and summoned the pharmacy’s principal responsible person for a formal interview. The Medical Security Bureau imposed medical insurance payment qualification penalty points on relevant personnel, while the Market Supervision Bureau initiated an administrative case.
A Test Case for New Pricing Rules
This incident occurred just six weeks after the State Council issued its landmark “Opinions on Improving the Drug Price Formation Mechanism” on April 14, 2026, which explicitly prohibits “yin-yang pricing” — charging different prices to different customers — and requires designated pharmacies to publicly compare drug prices. The policy, published as State Council Document No. 9 of 2026, also calls for regular online-offline price comparisons and the development of drug price comparison mini-programs for public use.
Wang Xiaoning, Director of the NHSA Medical Insurance Drug Pricing and Procurement Department, stated at an April 15 policy briefing that “designated pharmacy prices must not be significantly higher than retail prices in other channels, and must not implement unfair yin-yang pricing for insured versus uninsured patients.”
Regulatory Gaps Exposed
The investigation also revealed confusion among government agencies over jurisdiction. When the patient’s family called the Inner Mongolia Market Regulation Bureau’s 12315 hotline, they were told the agency only monitors clear price labeling, not pricing itself. The Hohhot 12345 government service hotline acknowledged the price difference was “somewhat abnormal” but noted the drug falls under market-adjusted pricing, not government-set pricing.
Professor Deng Yong of the Beijing University of Chinese Medicine Law Department told Sina News that “centralized procurement price reductions are operational risks arising from policy changes. Pharmacies can negotiate with upstream enterprises for returns, exchanges, or price difference compensation, but these are commercial negotiations. Pharmacies cannot shift all operational risks onto patients.”
Deng called for accelerated implementation of drug price comparison mini-programs and real-time price transparency across hospital, pharmacy, and online channels, arguing that “information barriers in drug pricing must be broken down so patients can consume with full understanding.”
Systemic Response
The Inner Mongolia Autonomous Region Medical Security Bureau has ordered a comprehensive review of centralized procurement price implementation across all designated pharmacies in the region. The investigation also found that some online platforms and other pharmacies were listing the same drug at inflated prices, suggesting the problem may not be isolated to a single pharmacy.
What’s Next
This case is likely to accelerate the nationwide rollout of drug price comparison mini-programs, as called for in the State Council’s April policy. It also highlights the need for clearer regulatory jurisdiction over drug pricing complaints and stronger enforcement mechanisms to ensure that savings from centralized procurement reach end consumers rather than being captured by retailers.
For now, the specific penalties for Jingyuan Pharmacy’s responsible personnel have not yet been announced, and it remains unclear how many other patients may have been overcharged before the issue came to light.