International Business Times·2025-12-08 13:07Core Insights - China has approved 19 innovative medicines for its first commercial health insurance drug catalog, allowing companies to sell advanced therapies at better prices [1] - The catalog aims to alleviate pressure on China's national insurance system, which has historically required significant price reductions from drugmakers [2] - The new list includes treatments for cancer, Alzheimer's disease, and rare genetic conditions, reflecting the growing demand for affordable healthcare options in China [2] Industry Impact - Drugmakers had to negotiate special discounted prices with the government to be included in the catalog, which will now be accessible to all private insurers [3] - The catalog is expected to benefit global companies that previously struggled to meet the steep discounts required for the national list [3] - The negotiations allow Chinese drugmakers to maintain their overseas pricing confidentiality [4] Company Specifics - The approved drugs include Eli Lilly's Kisunla and Eisai's Leqembi for Alzheimer's, as well as cancer treatments from Pfizer, Johnson & Johnson, and Bristol-Myers Squibb [4] - Several Chinese companies, including five producers of CAR-T cell therapies, were also included in the list, with BeOne Medicines having two drugs selected [5] - The final discount amounts for the drugs were not disclosed, but earlier reports indicated reductions between 15% and 50%, which are less than the 60% cuts typical under the national system [5] Regulatory Environment - Out of 24 drugs that reached final negotiations, only 19 were approved, indicating a cautious approach by regulators in the first year of the program [6] - The national insurance program has historically leveraged its power to demand low prices, complicating the market for expensive new therapies [6] - Analysts anticipate the catalog will expand to about 300 drugs by 2027, indicating potential growth in the market for innovative treatments [7]