Back when Xinhuan Pharmaceutical adopted an international pharmaceutical strategy for their new anticancer drug, although it was much cheaper by actual price comparison, this move made it so that other similar foreign drugs were no more expensive.
Logically, this is not too big of a problem. Xinhuan Pharmaceutical's new drug was not weaker in effectiveness, and thus, its price should be similar, since Xinhuan did not receive significant national subsidies.
But the reality is that domestic people have a blind faith in foreign drugs, naturally believing them to be superior, so maintaining the high pricing would inevitably lose a significant portion of the market!
If a price reduction strategy were adopted, it would significantly impact Xinhuan Pharmaceutical's profits, further affecting investor confidence in Sichuan University Group.
