China’s National Healthcare Security Administration (NHSA) and the Ministry of Human Resources and Social Security (MHRSS) announced in mid-January the drugs added to the 2022 NRDL. In exchange for drug reimbursement, an average price cut of about 60% was accepted by these drug companies. Added drugs included – 6 rare diseases, 18 anti-infectives, 25 cancer drugs, and 55 chronic disease drugs. For COVID infections, Merck’s Lagevrio was added, but Pfizer’s Paxlovid was not. Some foreign drug companies decide not to enter China’s NRDL to avoid price reductions.
The logic of the NRDL is if it is not possible to reimburse all drugs, it is important to reimburse drugs for basic medical care. NRDL drugs must be clinically necessary, safe, effective, reasonably priced, and have a secure supply. The NRDL is adjusted annually and now includes more children’s drugs and treatments for rare diseases. Please note, there are additional inclusion criteria to be eligible for the NRDL. Finally, to get on the NRDL, drugs are added via – 1. Inclusion via bidding or 2. Inclusion via negotiation.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.