The authorities in China have launched an investigation involving about 60 pharmaceutical companies following allegations of unfair pricing system.

The National Development and Reform Commission, which is the top economic planning agency in China, will investigate 27 companies for costs and 33 for pricing. The investigations will include firms like GlaxoSmithKline Plc , Merck & Co and otehrs. The agency said that the its officials will visit the domestic and foreign companies between July and October.

The commission said in a statement that was posted on Evaluation Center of Drug Pricing that the officials will examine the company's pricing and cost systems. It also aid that the investigations will make sure that the prices are set in a more timely fashion. The investigations will include Astellas, Novartis's generics unit Sandoz, Boehringer Ingelheim, Baxter International and Fresenius as well as Chinese firms.

The investigation comes after China's national essential drugs list was published in March, which increased the items on the list to 500 from 305. The drugs that are covered on the list are subsidized and purchased in bulk by provincial governments and are medicines that must be available at all hospitals.