China’s Long-Awaited Reimbursement Mechanism for Pharma Products

  • China’s governing bodies and reimbursement mechanisms and policies
  • Parameters used for reimbursement pricing
  • The 15% rule and how China’s reimbursement process differs from other countries’
  • Recent price cuts for products that made it to the NRDL
  • PD-1 inhibitors that made it to the NRDL

Key Takeaways

  • The NRDL has been updated annually since 2017
  • There are no separate Provincial Reimbursed Drug Lists (PRDLs); the provinces have been given until 2022 to consolidate their lists
  • Time to reimbursement from product launch decreased significantly to 1.3 years in 2020 from 4.7 years in 2017
  • Manufacturers are not allowed to apply for listing their products on the NRDL; the list of potential drugs is selected by an expert committee
  • The National Healthcare Security Administration (NHSA) very likely benchmarks the pricing to the lowest price of international reference pricing from a basket of 12 recommended countries
  • Negotiations will be conducted only for those products whose manufacturer’s offer price falls within 15% of the target price set by the expert committee
  • The average discount since 2017 has been a little over 50% for products included in the NRDL; this puts significant pressure on manufacturers

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Acuity Knowledge Partners

Acuity Knowledge Partners

57 Followers

We write about financial industry trends, the impact of regulatory changes and opinions on industry inflection points. https://www.acuitykp.com/