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China to encourage pharmaceutical innovation

Updated: Jun 6,2016 8:09 PM

The State Council on June 6 issued a plan on experimental changes to the drug licensing system, aimed at promoting pharmaceutical innovation and better quality by offering more incentive to researchers.

According to the plan, drug research and development agencies and researchers can directly apply for licenses to mass produce the drugs they developed. The pilot projects will be carried out in 10 provincial regions: Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong and Sichuan.

To become drug producers, the research and development agencies and researchers have to submit a clinical trial application and marketing approval before getting a license. The pilot projects exclude drugs such as anesthesia, psychotropic and radioactive drugs.

The plan also sets basic procedures for agencies and researchers to apply for business licenses as producers for newly registered drugs as well as those that have already been approved.

The plan said that consumers can sue for compensation from both license holders and drug producing enterprises if injuries are caused by commercially approved drugs.

The plan will be tried and tested until Nov 4, 2018.