Drugmakers cut prices by an average of 62% to get listed on China National Insurance Reuters

© Reuters. On April 15, 2020, an employee appeared in a pharmacy after the coronavirus disease (COVID-19) outbreak in Suifenhe, China’s Heilongjiang Province, bordering Russia. REUTERS/Huizhong Wu/File Photo

BEIJING (Reuters)-Chinese authorities said on Friday that pharmaceutical companies have agreed to cut the prices of 67 drugs by an average of 61.7% in the new round of negotiations.

Being included in the national reimbursement drug catalog has helped many global drugmakers, including Merck and Novartis, have experienced strong growth in product sales in China in recent years as their products have become more widely available.

The 67 new drugs are brand-name drugs and there are no generic drugs in China, including Eli Lilly (NYSE:)’s psoriasis treatment drug Taltz and Johnson & Johnson (NYSE:)’s multiple bone marrow Blockbuster such as the tumor drug Darzalex. National Medical Security Administration (NHSA).

Products from domestic companies such as InnoCare Pharma Ltd and BeiGene (NASDAQ:) Limited is also included.

Last year, drugmakers agreed to lower the average price of more than 100 drugs by about 50%, highlighting China’s strong bargaining power as it seeks to make more drugs affordable for 1.4 billion people.

NHSA official Huang Huabo said at a press conference that 94% of the 67 drugs had the largest price cut, but the product was not named.

When negotiating with Biogen Corporation (NASDAQ:) on its rare neuromuscular disease drug Nusinersen, government negotiators told company officials that the company should “work harder” to cut prices and emphasized the government’s price ceiling It is non-negotiable. The two parties reached an agreement before, and the video clip of CCTV showed it.

Biogen did not immediately respond to Reuters’ request for comment.

In another example showing the state’s significant impact, the Danish diabetes drugmaker Novo Nordisk (NYSE:) A/S said last month that its sales growth will slow in 2022 due to lower prices and reduced sales in China3 %.

Insulin manufacturers agreed last month to reduce prices by an average of 48% to qualify for mass supply to public hospitals.

For certain drugs that have been included in the reimbursement list, such as Shanghai Junshi Biotechnology Co., Ltd. and BeiGene’s PD-1 inhibitors, the government has expanded the coverage by adding more disease types.

According to the NHSA, in addition to 67 brand-name drugs, 7 generic drugs have been added to the list, and 11 drugs with low clinical value have been deleted.

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