China investigating drug prices

Chinese news reports say the government has launched an investigation into drug prices set by 60 foreign and domestic manufacturers in a possible move to lower costs.

The probe by the Cabinet's planning agency comes after foreign suppliers of infant formula announced price cuts this week in response to an investigation of possible price-fixing.

Chinese leaders who took power last year face pressure to contain surging living costs and improve life for the country's poor majority.

China's government dictates maximum prices for hundreds of drugs.

The news reports said the latest investigation by the National Development and Reform is aimed at supporting "development of drug price adjustments.