Pharmaceuticals are divided into the following separate categories depending on their patent status and their classification under China's regulatory system, with pricing methods and profit margins set accordingly:
Class I: Invented, developed and manufactured in China;
Class II: Phase I and II pf clinical trials are undertaken in China; there will be a three-year period of "relaxed" pricing from the date of marketing approval;
Class III, IV and V are similarly classified by origin, type and function.
Products in all categories will be able to retain their original official profit ratio for a five-year period after any applicable protection period expires.
