China launches drug pricing probe China's drug pricing authority has launched a wide-ranging probe into the costs of medicines at 60 domestic and international drugmakers, ratcheting up the pressure for price cuts. The investigation by Beijing's National Development and Reform Commission, which embraces the local affiliates of foreign companies such as Merck of the US, GlaxoSmithKline, Astellas, Baxter Healthcare and Sandoz comes after a similar NDRC probe resulted in manufacturers of baby milk cutting their prices by up to 20 per cent. The action marks an intensification of the regular process by which maximum prices are set for medicines reimbursed in China. But the probe was wider, deeper and sooner than expected, said one local consultant. It comes at a time of change among senior Chinese government officials, against a backdrop of growing pressure to control escalating spending as the country expands the quality and breadth of medical coverage from richer urban to poorer rural people. Shaun Rein of China Market Research in Shanghai said: "The government wants to make sure healthcare is more affordable for ordinary Chinese. This is a warning shot. They want to exert downward pressure on pricing. The latest inquiry follows China's decision earlier this week to probe several foreign infant formula manufacturers for allegedly unfair pricing practices. The move appeared to have an almost immediate effect as some formula producers said they would cut their prices. The official Chinese newspaper Securities Daily said the focus of the NDRC investigation might be the difference between prices for imported pharmaceuticals in China and in other markets globally. Hong Pei, a senior director for Astellas in China, said: "This is a regular investigation. The authorities do a price investigation every year. We will need to provide manufacturing and promotion figures to show our cost of goods. However, other industry executives said the probe was unusually large in covering so many companies. Past experience suggested it would lead to a round of further price cuts, they said. The probe is the latest in a series of actions that highlight the challenges for western companies operating in China, a fast-growing market predicted to be the second-largest in the world by the end of the decade. GSK has been a recent focus for the Chinese authorities, after police in the central Chinese city of Changsha last week placed company officials under investigation for alleged "economic crimes." GSK said it was aware of the Changsha probe, but there had been no charges or arrests and it had no other details. It said: "We can confirm that there is an investigation under way. Additional reporting by Zhang Yan in Shanghai