The Chinese pharmaceutical system requires drugs to be approved by the National Medical Products Administration (NMPA), and the National Healthcare Security Administration (NHSA). Given that the guidelines and standards for both organizations differ, pharmaceutical firms must thoroughly consider their approach when pitching their drugs. As of this past week, major pharmaceutical firms in China have set discussions into motion regarding the negotiation of drugs in front of the NHSA.
The overarching question in the Chinese pharmaceutical manufacturing field is, what qualifies a drug as truly innovative or groundbreaking? Government health insurance departments and companies lack a shared consensus on the answer despite the shared understanding of the importance of acknowledging innovative drugs that are produced. A concern in the industry is appropriately pricing these innovative drugs, which is challenging to do without a set definition to constitute them.
Fosun Kite Biotechnology Co. Ltd. produced CAR-T, chimeric antigen receptor T-cell therapy. CAR-T, along with cancer-related drugs, are viewed as a priority by Chinese companies and health departments. A key concern from the NHSA was regarding the 1 million yuan ($140,000) cost per round of treatment, which was seemingly out of range given that the state and patient split the cost. Fosun Kite justified this high price by expanding on the apex level of quality management. For this particular drug, the company lacks negotiation leverage since the drug is comparable to others that have already passed and been released.
Overall, the Chinese medical field is working toward shared consensus and higher prices for worthy products, deemed as innovative.
Comments