As part of its ambitious plan to reform the country’s healthcare system and lower drug costs, China has begun rolling out a centralized drug procurement system. The system rewards the cheapest price tag, with drug makers competing for contracts to supply generic drugs to the nation’s public hospitals and the government choosing the winners. Two years into the program, it’s already clear who the losers are: global drug makers like Pfizer, Merck and Eli Lilly. The vast majority of contrac