Eli Lilly and Company (NYSE:LLY) is one of the stocks Jim Cramer discussed, along with the tech battleground. A caller asked Cramer about an optimal entry point into the stock, and he replied: “I think that people now are getting antsy and thinking that it’s really breaking down. That’s probably when I want to start buying. I think that this, we’re very close to the Medicare payment, and it also has, you know, new indication after new indication, new indication, new readout, new readout. Buy some here and ...

Core Insights - Eli Lilly (LLY.US), Pfizer (PFE.US), and Johnson & Johnson (JNJ.US) have secured positions in China's first innovative drug catalog, opening new market channels and enhancing sales prospects for expensive therapies [1] - The inclusion of 19 innovative drugs in the medical insurance reimbursement list aims to alleviate the burden on the national insurance system while allowing pharmaceutical companies to sell at higher prices, thus improving profit margins [1] - The list is expected to expand the role of private insurance in funding innovative drugs, which currently holds a small market share in China [1][2] Group 1 - The drugs listed cover various diseases, including cancer, Alzheimer's, and rare genetic disorders, reflecting the growing demand for treatments due to China's aging population [1] - The average discount for the drugs has not been disclosed, but previous reports suggest a range of 15% to 50%, which is lower than the typical 60% discount required for inclusion in the National Reimbursement Drug List (NRDL) [2] - The selection process for the final list was competitive, with only a few drugs making it through from an initial pool of 24, indicating a cautious approach by regulators in the first year of implementation [2] Group 2 - Analysts suggest that the growth rate of commercial insurance sales may not match that of national insurance, as insurance companies need to establish communication with hospitals regarding reimbursement processes [3] - The initial catalog included both foreign and domestic pharmaceutical products, but the final list is relatively small and may not significantly disrupt the market landscape [3] - Projections indicate that the number of drugs in the catalog could increase to 300 by 2027, suggesting potential future growth in the market [3]

Core Insights - The founder and CEO of Aikang Group, Zhang Ligang, emphasized the importance of weight management for entrepreneurs to appear younger, noting that over half of entrepreneurs are overweight [1][3] Group 1: Weight Management - Zhang highlighted that managing weight is the primary factor for entrepreneurs to maintain a youthful appearance [1][3] - He mentioned that there are now medications available for weight management, which can be effective if individuals lack the willpower to control their weight through diet and exercise [1][3] Group 2: Medications for Weight Management - Three specific medications were mentioned: Semaglutide, Eli Lilly's Tirzepatide, and the latest from Innovent, Ma Shidu [1][3] - These medications are recommended for individuals with a BMI over 24, especially if they have related conditions such as abnormal blood lipids or blood pressure [1][3]

Core Viewpoint - The article discusses the significant updates to China's National Medical Insurance Drug List, highlighting the inclusion of innovative drugs, particularly focusing on the GLP-1 receptor agonist, Tirzepatide, for the treatment of type 2 diabetes, which reflects the government's commitment to improving access to innovative therapies [5][7][9]. Summary by Sections National Medical Insurance Drug List Update - On December 7, the National Healthcare Security Administration announced a major update to the National Medical Insurance Drug List, adding 114 new drugs, including 50 innovative drugs [5]. - The success rate for drugs entering the negotiation and bidding process increased to 88%, up from 76% in 2024, indicating a more favorable environment for innovative drug approvals [5]. Inclusion of Tirzepatide - Tirzepatide injection, developed by Eli Lilly, has been officially included in the National Medical Insurance Drug List for adult patients with type 2 diabetes who do not achieve adequate blood sugar control with metformin and/or sulfonylureas [7]. - The new drug list will take effect on January 1, 2026, showcasing the clinical value of Tirzepatide and the government's focus on the accessibility of innovative drugs [7]. Impact on Diabetes Management - China has approximately 148 million adults with type 2 diabetes, with only about 50% achieving target blood sugar levels [9]. - The inclusion of Tirzepatide in the insurance list is expected to significantly enhance treatment access for patients, potentially improving long-term management and health outcomes for diabetes patients [9].

Core Insights - Eli Lilly's drug Mounjaro will be included in China's state-run health insurance scheme starting January 1 for type 2 diabetes patients [1] Group 1 - Mounjaro is a popular drug developed by Eli Lilly [1] - The inclusion in the health insurance scheme indicates a significant step for Eli Lilly in expanding its market presence in China [1] - The decision was announced by the National Healthcare Security Administration through a website notice [1]

Core Insights - The BRUIN CLL-314 study demonstrated that pirtobrutinib (Jaypirca) achieved a higher overall response rate (ORR) of 87.0% compared to ibrutinib's 78.5%, meeting its primary endpoint of non-inferiority [1][4] - Pirtobrutinib showed a favorable trend in progression-free survival (PFS), with a 76% reduction in the risk of disease progression or death in treatment-naïve patients [1][5] - The study results will be published in the Journal of Clinical Oncology and presented at the 2025 American Society of Hematology Annual Meeting [1][2] Study Details - The BRUIN CLL-314 study was a Phase 3, randomized, open-label trial involving 662 patients, comparing pirtobrutinib to ibrutinib in treatment-naïve and BTK inhibitor-naïve patients [3][10] - The primary endpoint was ORR assessed by an independent review committee, with secondary endpoints including PFS, duration of response, and safety [10] Efficacy Results - Pirtobrutinib's ORR was statistically non-inferior to ibrutinib, with a nominal p-value of 0.0035 [4] - The efficacy results favored pirtobrutinib across all evaluated populations, including treatment-naïve and relapsed/refractory patients [4][5] Safety Profile - The overall safety profile of pirtobrutinib was similar to previous trials, with fewer treatment-emergent adverse events compared to ibrutinib [6][7] - Notable adverse events included lower rates of atrial fibrillation/flutter (2.4% vs. 13.5%) and hypertension (10.6% vs. 15.1%) with pirtobrutinib [7] Future Directions - Lilly plans to share additional results from the Phase 3 BRUIN CLL-313 study at the ASH Annual Meeting, further exploring pirtobrutinib's efficacy in treatment-naïve CLL/SLL patients [8]

Core Viewpoint - The recent inclusion of innovative cardiovascular and metabolic disease drugs in China's medical insurance directory is expected to accelerate access and affordability for patients, particularly for diabetes and cholesterol management medications [3][4][7]. Group 1: Drug Inclusion and Pricing - The GLP-1 class diabetes drug, Tirzepatide (brand name: Mufengda), has been included in the medical insurance directory less than a year after its market approval in China, specifically for adult type 2 diabetes patients [3][4]. - The long-acting PCSK9 inhibitor, Inclisiran (brand name: Lekewai), is expected to see a price reduction of over 60% after being included in the insurance directory, potentially dropping from 9,988 RMB per injection to around 3,000 RMB [4][7]. - The monthly treatment cost for Tirzepatide ranges from 1,758 RMB to 4,758 RMB, indicating a significant financial burden for patients even after insurance coverage [4][5]. Group 2: Public Health Implications - The rising prevalence of dyslipidemia and diabetes in China, with adult dyslipidemia rates at 35.6% and over 140 million diabetes patients, underscores the importance of including effective innovative drugs in the insurance system to alleviate patient financial burdens and improve chronic disease management [5][6]. - The inclusion of these drugs in the insurance directory is seen as a public health advancement, enhancing patient access to high-quality treatments and improving adherence to long-term management of chronic diseases [7][8]. Group 3: Future Drug Development - The inclusion of innovative drugs in the insurance directory is expected to accelerate the development and introduction of next-generation drugs by multinational pharmaceutical companies in the Chinese market [8]. - Clinical trials for new oral PCSK9 inhibitors and other innovative therapies are being initiated in China, reflecting the country's efficient patient recruitment process and lower costs compared to the U.S. and Europe [8].

Core Viewpoint - The recent adjustments to the national basic medical insurance directory and the introduction of the commercial insurance innovative drug directory mark significant steps towards enhancing access to innovative treatments in China, particularly for high-cost therapies like CAR-T drugs [2][6]. Summary by Sections National Basic Medical Insurance Directory Adjustments - A total of 114 new drugs were added to the basic medical insurance directory, including 50 first-class innovative drugs [2]. - The total number of drugs in the basic medical insurance directory has increased to 3,253, comprising 1,857 Western medicines and 1,396 traditional Chinese medicines [3]. - New inclusions cover various fields such as oncology, chronic diseases, mental health, and pediatric medications, with several rare disease treatments also added [3]. Commercial Insurance Innovative Drug Directory - The commercial insurance innovative drug directory aims to include high-innovation drugs that exceed the basic insurance scope but offer significant clinical value and patient benefits [6]. - A total of 121 drugs underwent formal review for the commercial insurance directory, with 24 entering price negotiation, ultimately resulting in 19 drugs from 18 companies being included [6]. - Notable inclusions are five CAR-T therapies, which previously cost over one million yuan per injection, making them unaffordable for many patients [6]. Performance of Pharmaceutical Companies - Several leading pharmaceutical companies have reported their successes in the 2025 national medical insurance negotiations, with Heng Rui Pharmaceutical having 20 drugs included, contributing 7.554 billion yuan to their total revenue [5]. - Innovent Biologics announced that 7 of its new drugs were included in the updated national medical insurance directory, with 12 of its 17 innovative drugs now covered [5]. Specific Drug Inclusions - The directory includes drugs for Alzheimer's disease, such as the monoclonal antibodies from Eisai and Eli Lilly, and several rare disease treatments [7]. - Some high-profile drugs, like Novo Nordisk's semaglutide and Bristol-Myers Squibb's nivolumab, were not included despite passing the formal review [8]. Implementation Timeline - The new directory is set to be officially implemented nationwide on January 1, 2026 [9].

Core Insights - The Chinese medical insurance directory will undergo its largest expansion of innovative drugs in history starting January 1, 2026, adding 114 new drugs, including 50 class 1 innovative drugs, while removing 29 drugs that are either unavailable or can be replaced by better alternatives [1][2] - The total number of drugs in the directory will increase to 3,253, significantly enhancing coverage for key areas such as oncology, chronic diseases, mental health, rare diseases, and pediatric medications [1][2] - The inclusion of innovative drugs in the medical insurance directory reflects a strong commitment to support genuine innovation and differentiated innovation in the healthcare sector [1][2] Medical Insurance Directory Expansion - The new directory will include 114 drugs, with nearly 44% being class 1 innovative drugs, indicating a growing emphasis on innovative treatments [1][2] - The directory will enhance the insurance coverage for critical areas, improving access to necessary medications for patients [1][2] Innovative Drug Market Dynamics - The entry of innovative drugs into the medical insurance directory is a key driver for market growth, with those included typically experiencing rapid sales growth within a year [4] - Companies like Heng Rui Medicine and Innovent Biologics have successfully included multiple innovative products in the new directory, indicating a trend towards increased market access for innovative therapies [4][5] Clinical Needs and Treatment Options - The new directory addresses significant clinical needs, particularly in oncology, with new drugs targeting various types of cancers, thereby expanding treatment options for patients [9][10] - The inclusion of targeted therapies for conditions like severe asthma and breast cancer provides patients with more accessible and effective treatment options [6][10] Commercial Insurance Directory - The introduction of a commercial insurance directory for innovative drugs aims to balance clinical value, corporate profits, and the sustainability of insurance funds [2][12] - The commercial insurance directory includes 19 innovative drugs, highlighting a focus on high-value treatments that exceed basic insurance coverage [12][15] Policy and Regulatory Environment - Recent reforms in drug approval and medical insurance payment systems have created a conducive environment for the development of innovative drugs in China [17][18] - The acceleration of drug approvals and the establishment of a more rigorous evaluation system for innovative drugs are reshaping the landscape for pharmaceutical companies [17][18] Future Outlook - The ongoing expansion of the medical insurance directory signifies a shift towards making innovative drugs more accessible and affordable for the general population, enhancing overall healthcare outcomes [20][21] - The collaboration between policy, industry, and capital markets is essential for fostering high-quality development in the innovative drug sector [19][20]

Core Insights - The recent inclusion of innovative drugs in China's medical insurance system is expected to significantly reduce prices and improve access for patients, particularly for those with metabolic diseases like diabetes and high cholesterol [1][4][5] Group 1: Drug Inclusion and Pricing - The innovative drug Tirzepatide (brand name: Mounjaro) has been included in the medical insurance directory for adult type 2 diabetes patients, marking its entry into the market less than a year after approval [1] - The long-acting PCSK9 inhibitor Inclisiran (brand name: Leqvio), which was priced at 9,988 RMB per injection, is projected to see a price drop of over 60% after being included in the insurance system, potentially reducing the cost to around 3,000 RMB per injection [3][4] - The monthly treatment cost for Tirzepatide ranges from 1,758 RMB to 4,758 RMB, which remains a significant financial burden for patients despite the insurance coverage [3] Group 2: Public Health Impact - The inclusion of these innovative therapies in the insurance system is crucial for alleviating the financial burden on patients and enhancing chronic disease management efficiency, especially given the rising prevalence of conditions like diabetes and high cholesterol in China [4][5] - China has the highest number of diabetes patients globally, with over 140 million adults affected, leading to substantial healthcare expenditures [4] Group 3: Future Drug Development - The acceleration of innovative drug inclusion in the insurance system is expected to stimulate multinational pharmaceutical companies to expedite the development and market introduction of next-generation drugs in China [6] - Clinical trials for new oral PCSK9 inhibitors and other innovative treatments are currently being initiated in China, reflecting a growing focus on advancing therapeutic options in the cardiovascular and metabolic disease sectors [6][7]