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Drugmakers cut prices by 62% on average to get China state insurance listing -Breaking

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© Reuters. After an epidemic of coronavirus in China (COVID-19), an employee seen at a pharmacy in Suifenhe. It was April 15, 2020. REUTERS/Huizhong Wu/File Photo

BEIJING (Reuters – Chinese authorities have announced that 67 medications will be added to China’s national insurance plan in a round of new negotiations in which pharmaceutical firms agreed to lower their average prices.

Inclusion on the National Reimbursement Drugs List has helped many global drugmakers such as Merck & Co Inc and Novartis AG book strong product sales growth in China in recent years, as their products have become more widely available.

The newly added 67 medicines are branded drugs with no generic versions available in China and include blockbusters such as Eli Lilly & Co (NYSE:)’s psoriasis treatment Taltz and Johnson & Johnson (NYSE:)’s multiple myeloma drug Darzalex, according to the National Healthcare Security Administration (NHSA).

InnoCare Pharma Ltd. produces products BeiGene Also included was (NASDAQ:) Ltd

China has a strong bargaining position and agreed to a price reduction of approximately 50% on more than 100 drugs last year. This demonstrates China’s determination to lower drug prices for its nearly 1.4 billion citizens.

Huang Huabo from NHSA stated that the 94% price drop was the largest among the 67 drugs. However, Huang Huabo did not identify the product at the news conference.

Biogen Inc (NASDAQ) was involved in negotiations for the rare neuromuscular disease drug Nusinersen. A government negotiator stated to a company representative that they should work harder on price reductions. He stressed that the price limit set by the government was not negotiable. Video clips from CCTV, a state broadcaster, showed the negotiation.

Biogen has not yet responded to a Reuters comment request.

Novo Nordisk (NYSEA:) last month stated that its sales would be slowed by 3% due to lower Chinese prices.

Last month, insulin makers agreed to lower prices by 48% in order to qualify for bulk supply to public hospitals.

Some medicines that were included on the existing reimbursement list, like PD-1 inhibitors from Shanghai Junshi Biosciences Co Ltd (BeigeGene), have been expanded by the government to cover more types of diseases.

The list included 67 brand-name medications. Seven medicines with generic versions were also included, and 11 drugs of low clinical significance were deleted, the NHSA stated.

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