"Each country or region has its individual pricing system, tariff and logistic costs. We will form our own pricing method with reference to theirs," he said, adding the method is aimed at limiting a monopoly on drug prices.

The agency on Tuesday announced it will cut the maximum retail prices of about 400 drugs in 20 categories, including medicines used to treat respiratory diseases and fever, by an average of 15 percent, starting on Feb 1.

This is the fifth round of drug price adjustments since 2011 for products included on the essential drugs list. The average reduction for involved high-priced drugs will be up to 20 percent.

Prices for medications used to treat cancer, blood diseases and illnesses related to the nervous system have been cut since 2011, according to the commission.

China has begun a national medical reform aimed at providing more affordable medical care. The central government has pledged to pour 850 billion yuan ($135 billion) into reforming the country's medical system and building a basic medical insurance system.

In 2009, MSD, know as Merck in the US and Canada, voluntarily slashed the price of a drug used for treating coronary heart disease, making it the first innovative medicine produced by a foreign company to be included on the essential drugs list.

"The decision was not made from a sales perspective, but a wish to be proactive in supporting China's health reform. We will continue to support efforts to help patients receive better treatment," said Pam P. Cheng, president of MSD China.

Liu Jie contributed to this story.

Contact the writer at lanlan@chinadaily.com.cn

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