BusinessLine·2025-12-07 05:47Core Insights - Eli Lilly & Co., Pfizer Inc., and Johnson & Johnson have been included in China's first innovative drug catalog, which may enhance their sales prospects for high-cost treatments [1] - The catalog includes 19 medicines for various conditions, potentially easing the burden on state medical insurance as demand for therapies rises due to an aging population [2] - Drugmakers negotiated discounted prices with the government for inclusion in the catalog, which may allow them to sell at higher prices through commercial insurance [3][5] Group 1 - The inclusion of these drugs is expected to bolster profit margins for global and Chinese drugmakers, which have been suppressed by significant price cuts in the national program [2] - The catalog aims to expand the role of commercial insurance in funding innovative drugs, addressing long-standing issues faced by Chinese biotechs regarding slim profit margins [7] - Analysts predict the catalog could grow to 300 drugs by 2027, indicating a potential shift in the market dynamics [8] Group 2 - The new catalog was released alongside an update to the national reimbursement drug list (NRDL), which added 114 new drugs, including Lilly's diabetes treatment Mounjaro, effective January 1 [9] - The average discounts for the drugs in the catalog were not disclosed, but local media previously reported discounts ranging from 15% to 50%, which are less than the typical 60% cuts required for the NRDL [5][6] - The catalog includes both foreign and local drugmakers, with a notable presence of CAR-T cell therapies among the listed drugs [3][8]