Niu Zhenggan: Avoid Bribery Competition Market

Speaker: Niu Zhengqian, Vice President of the Chinese Pharmaceutical Enterprise Management Association This year after the GSK incident, many companies in the country gloated after Lilly and Pfizer were exposed and investigated. On September 11th, When Zhengdaqing was exposed, many domestic companies were nervous. This time tension was strained, and it was still psychological. In August and September, many investment agencies called me and asked me a lot: Mr. Niu, do you judge whether the crackdown on medical commercial bribery will be like 2006? Made so serious?

Anti-commercial bribery in 2013 and different pharmaceutical industries in 2006 increased from the average of 13 years from 2000 to 2013, an average increase of 30% before 2007, a few from 2008 to 20% in 2012, only a growth of less than 15% in 2006. In 2006, commercial bribery was severely cracked down, which made the pharmaceutical industry uncomfortable that year. In August, many investment institutions and many practitioners in the pharmaceutical industry thought that it would not be a storm to reproduce commercial bribery in 2006. Seriously affecting the situation in 2013 and even the pharmaceutical industry in 2014? After the incidents such as Glaxo and other incidents occurred in October, the incidents of cracking down on bribery gradually weakened. After the media exposure decreased, the Health and Planning Commission set up an anti-commercial bribery unannounced visit team in October. Everyone was under great pressure and would not. Combating commercial bribery further extended? On the one hand, due to the exposure of the incident, everyone's judgments, on the other hand, the Ministry of Public Security, the State Administration for Industry and Commerce, the Bureau of Food and Drugs, the Health and Welfare Planning Commission, the National Taxation Bureau, the People's Department, etc., are all believed to be related to the fight against commercial bribery. Is bribery related? Is there a relationship, but is it related to starting a new round of crackdown on the commercial bribery of medicine? I think it doesn't matter.

The difference between cracking down on commercial bribery in medicine in the year of the year and the difference in 2006 is very different. 2013 was a storm caused by occasional isolated incidents; 2006 was a holistic deployment. At that time, the Supreme People’s Congress Supreme People’s Procuratorate and the Ministry of Public Security and other 20 departments jointly drafted the documents of the Central Commission for Discipline Inspection, the name of the General Office of the CPC Central Committee and State Council. The documents issued against commercial bribery are very different and have different backgrounds. The way to fight is different. When bribery was cracked in 2006, it basically started with medical institutions first, followed by a doctor in the hospital pharmacy department, and then in turn grabbed a doctor and then took over the bidding office. In 2013, there have been no signs yet that the crackdown on medical institutions has been strengthened, and the companies have been hit. We are looking at companies and what companies are hitting. In 2013, the enterprises that were hit are currently being hit and exposed. Some companies that were arrested have commonalities and are reported! Either it was reported by internal employees, reported by former employees, reported by competitors, or reported by the media. A conclusion was drawn that in 2013, the people had the right to criticize the government; in 2006, the people did not take the officials to correct it. This difference is very large. The public officials are correct. Regardless of the public interests involved in 2013 and 2006, they should be corrected at any time. The civil officials have to correct their problems, and the people in 2006 did not report the difference between the officials and the government. It can be said that the storm of cracking down on commercial bribery in 2013 was different from that in 2006. This means that we now judge that the crackdown on bribery in 2013 is limited and the impact is limited. Of course, everyone should pay clear attention. Because China's pharmaceutical market, especially the prescription drug market, it should be said that the law expressly prohibits commercial bribery.

Avoid Commercial Bribery The urgent need to improve the market system to combat commercial bribery, how to choose as a pharmaceutical company? We must deal with "reasoning" and "law" properly. We must pay attention to reasonableness and lawfulness in doing things. The Chinese people must also add two words to make a reasonable and legal settlement. It is certainly healthy and sustainable to make reasonable and legal actions. If you act, then obviously you are a law-abiding good citizen. If there are many things, China is legally prohibited in many cases and the reality is widespread. It means that many actions are reasonable but illegal. This statutory irrationality is accompanied by law. Clearly constructive, rectification and improvement of irrational laws and regulations, in reality, the vast majority of companies and individual natural persons can hardly do this. Of course, many industry organizations such as the Chinese Pharmaceutical Enterprise Management Association have done a lot of things. Every year during the two sessions of the National People's Republic of China, the national medical community and the National People's Political Consultative Conference held a symposium, submitted proposals, suggestions, etc., should say that fulfilling a responsible citizen. Responsibility.

There is still a part of the enterprise that is theoretically the same but it is legal but not reasonable. I call it a "legal villain." If you produce qualified counterfeit medicines and safe and ineffective counterfeit medicines, this is a legitimate loophole. According to the Pharmacopoeia standards, how to test it is acceptable, and how ordinary people eat is invalid. Legal, but unreasonable, there is no bottom line. Another part is neither legal nor reasonable. Certainly it cannot be done. It is called an evil demon. It is impossible and uncontrollable. What is reason? What is law, law, rules, laws, regulations, opinions, methods, policies, and rules of law? More companies are reasonable but not necessarily completely legal. This time will require us to improve the business environment and industrial environment. This is the first point I have made.

Unreasonable policies exist. In the next stage, the most important thing is to establish a unified, open, competitive and orderly market system so that the market plays a decisive role in the allocation of resources. It is necessary to accelerate the formation of independent management, fair competition, and consumer freedom. The choice of self-consumption. Perfecting the mechanism mainly determined by the market to determine prices, all market-forming prices are given to the market, the government does not engage in improper intervention, liberalize the prices of competitive links, and pay attention to the role of the market in forming prices. This is the original text of the Third Plenary Session of the 18th CPC Central Committee, which set the basic principles and guiding ideology for the next step in the formulation of drug price policies by the National Development and Reform Commission. Of course, will it not comply? Recently, everyone talked about the uproar, the benchmark price policy and the reserve price drug policy will surely come out. I sometimes praise him. Although I did not open enough, I still walked forward along the spirit of the Third Plenary Session. It seemed to be better than before. Of course see how it landed? There are also many medical insurance policies. Of course, the effective responsibilities of the medical insurance government and the main responsibilities are very important. Now that China’s medical insurance policy, the government is performing limited liability, the limited liability is changed through the payment of medical insurance, etc., and the price policy is changed according to the medical insurance payment price. Drug marketing will soon return to the late 1990s. Because of the limited liability, if the government fulfills the responsibility of changing the health insurance system, it will be changed from a project to a disease-by-disease, per capita, medicine and medicine approach, and not to too many countries and regions such as Hong Kong, Japan and Taiwan. The big difference, the limited liability is likely to be our drug marketing approach back to the 1990s. The benchmark price may abolish the tender and open up the second bargaining. The bidding is basically worthless. In this case, the payment of medical insurance is limited. What happens to the policy, the main responsibility of the health care provider, and the cost of medicines in the hospital. If the medical insurance is exercised with limited liability, the medicine may still be the hospital's source of profit in the hospital. This is a change in the part of Medicare payments. The payment method has changed. There is no piece of health insurance that the consumer pays, and consumer pays is an absolute disadvantaged group and cannot negotiate with the medical institutions. Similar drug marketing rules in the late 1990s certainly caused more serious problems than that.

The Third Plenary Session was inspiring. It was a long and arduous task. The people waited and looked forward to and hoped that the spirit of the Third Plenary Session would be able to land. It was not that the Central Government was saying that the market played a decisive role in the allocation of resources. Guangdong’s leaders decided to assign a hospital to whom. Whoever gave the pharmacy to whom it was given, the market of the Third Plenary Session of Beijing played a decisive role in the allocation of resources, and the local government is still using resources to allocate resources. Obviously called to face the center. However, participants in the actual economic activities, including the vast number of companies themselves, sometimes do not feel this. As companies themselves are looking forward to the health of the medical and health industry, they are now called the medical and health industry. We expect it to be healthy but not healthy. What should we do? When we go back tomorrow, we must pay employees, so what the company can do is follow the trend. To have a heavy single-plank bridge, it is necessary to take command of the commanding heights in transition and upgrades. Then we must occupy the commanding heights after transitioning and upgrading, and it will be possible to achieve reasonable and legal after the commanding heights. thank you all!