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They included some key products made by foreign pharmaceutical companies, such as Novartis’ blockbuster inflammation drug Cosentyx, and Israeli firm Teva Pharmaceutical’s Austedo treatment for Huntington’s disease.
Drugmakers have agreed to cut prices by around 50 per cent on average for more than 100 medicines in order to have them included in China’s state medical insurance scheme from March, potentially heralding a massive leap in sales.
The National Healthcare Security Administration (NHSA) said in a statement on Monday that an 119 medicines would be added to the National Reimbursement Drugs List (NRDL) with an average price reduction of 50.64 per cent.
They included some key products made by foreign pharmaceutical companies, such as Novartis’ blockbuster inflammation drug Cosentyx, and Israeli firm Teva Pharmaceutical’s Austedo treatment for Huntington’s disease.
The new drug list will be effective from March 2021, NHSA said. Inclusion on the list could potentially boost demand for medicines, as patients could be reimbursed for a significant portion of the costs.
The NHSA updates its list annually. Average sales of medicines added last time jumped by nearly 2,000 per cent during a nine-month period of 2020, according to a research by ICBC International Research analysts.
The National Healthcare Security Administration and the Ministry of Human Resources and Social Security are the competent authorities for determining the reimbursability of medicinal products, writes the Beijing-based law firm East & Concord in a note.
Expenses for drugs can be reimbursed if the drugs purchased are included in the National Drug Catalogue for Basic Medical Insurance, Work-related Injury Insurance and Maternity Insurance, and at the same time the medical institution providing the drugs or prescriptions is eligible for medical insurance coverage. Currently, some regions are piloting the direct reimbursement of retail drugs on a small scale.
Manufacturers or distributors of medicinal products are not statutorily obliged to give a discount to health insurance schemes or third parties, the note adds
REUTERS
