The top retail prices for some medicines used for cancer treatment will be lowered in Shanghai starting today as part of government attempts to cut medical costs, local authorities said over the weekend.

Prices will be cut by 20 percent on average, with prices for some drugs being cut in half, according to a statement released yesterday by the Shanghai Price Bureau and the Shanghai Health Bureau.

The price cut is the government's first attempt to withdraw pricing rights from some pharmaceutical companies, according to the statement.

"We first chose cancer drugs because they are usually very expensive," it said. "We will lower prices of other drugs on which the government has the pricing right step by step."

The price cut will affect 63 drugs in Shanghai, while the central government's National Development and Reform Commission took control of the prices of 67 cancer medications earlier this month. Four of those medications are not sold in the city.

The nationwide price controls on cancer drugs could save consumers 2.3 billion yuan (US$287 million), the planning body said on June 1.

"Local retail prices for cancer drugs must be lowered to below the national level, while for those which are already below the state standard, prices cannot be increased by any margin," the statement said.

(Shanghai Daily June 12, 2006)