Reimbursement and Market Access for Drugs in China
Obtain a high drug reimbursement price from China’s Ministry of Health.
To learn more about China drug reimbursement, please contact us.
China’s drug market is growing very fast. However, to maximize your opportunity there, drug reimbursement is key. China, like most countries, is trying to allow new innovative drugs into the market, but simultaneously reduce costs. The Ministry of Health (MOH) and other China agencies are in charge of drug reimbursement. The price of drugs depends on the intersection of medical insurance, doctors, and patients.
There are 2 main lists that drug manufacturers may want to enter in China. The first is the National Essential Medical List (NEML). The NEML is formulated according to the drugs that have been used for a long time with a high frequency. It is selected and scored by medical experts and then announced by the regulatory authorities. The reason to be on the NEML list is that Chinese institutions are strongly incentivized to buy drugs on this list, as well as the fact it will increase the potential size of the market.
The second list is the National Reimbursement Drug List (NRDL). This list is issued by the National Healthcare Security Administration where patients are reimbursed a certain percentage of the drug cost. It is broken down into 2 lists — the A list has drugs that will be fully reimbursed, and the B list has drugs that will be partially reimbursed. Drugs can enter the NRDL via two ways – 1. Inclusion via negotiation or 2. Inclusion via bidding. While entering the NRDL has many advantages, entry oftentimes requires drug manufacturers to lower their prices to be listed. Hence, some Western drug companies may decide it is not a good path to take
China is reducing its drug prices through several strategies. One is increased competitive national and local tenders. Also, Volume Based Procurement (VBP) is consolidating generic drug procurement and reducing drug prices. Drugs selected for VBP are determined by 3 factors – 1. clinical need, 2. company competition, and 3. financial burden reduction on the Chinese government. VBP reduces some drug prices in exchange for promised huge purchase amounts (about 60% to 70% of the overall annual purchasing amount of public hospitals).
To learn more about China drug reimbursement, please contact us.
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