Prime Highlights:
- China unveiled its first catalog of innovative drugs, featuring 19 treatments from global and domestic companies, targeting cancer, Alzheimer’s, and rare genetic disorders.
- The catalog allows high-priced medicines, previously excluded from state insurance, to gain coverage through commercial insurers, easing pressure on the public insurance system.
Key Facts:
- Drugmakers negotiated price discounts ranging from 15% to 50%, smaller than the reductions required for the National Reimbursement Drug List (NRDL).
- Analysts project the catalog could expand from 19 drugs to about 300 by 2027.
Background
China’s first catalog of innovative drugs features entries from Johnson & Johnson, Eli Lilly, and Pfizer. This new catalog provides a significant opportunity for high-priced drugs that previously struggled to obtain insurance coverage in the country. The announcement, made by officials, revealed that 19 drugs were added to the list, offering treatments for cancer, Alzheimer’s disease, and several rare genetic disorders.
The catalog is designed for medicines considered too expensive for China’s state medical insurance but suitable for commercial health coverage. With China’s aging population driving demand for advanced therapies, the move is expected to ease pressure on the public insurance system and give drugmakers more flexibility to maintain higher prices.
Companies negotiated discounted prices with the government, which will be offered across private insurers. Although specific cuts were not disclosed, local reports indicate they range between 15% and 50%, smaller than the deep reductions required under the National Reimbursement Drug List (NRDL).
Lilly’s Alzheimer’s drug Kisunla and Eisai’s Leqembi feature prominently. Oncology treatments by Bristol-Myers Squibb, Pfizer, and Johnson & Johnson are also part of the catalog. Chinese drugmakers secured several positions as well, including five producers of CAR-T cell therapies. BeOne Medicines is the only company with two drugs on the list.
China’s state insurance system covers 95% of the population and has long pushed drugmakers to offer steep price cuts in exchange for NRDL inclusion. While firms like AstraZeneca and Novartis embraced that model, others avoided it due to slim margins. The new catalog aims to shift part of the burden to commercial insurers and expand access to cutting-edge therapies.
Analysts at Macquarie Securities expect the catalog to grow from 19 drugs to about 300 by 2027. The catalog’s release came alongside the latest NRDL update, which added 114 drugs, including Lilly’s diabetes treatment Mounjaro. Both lists take effect on January 1.
