- October: China Adds Novel Drugs Catalog to Medical Insurance Talks for the First Time
The annual negotiations between China’s government and pharmaceutical firms to determine which drugs are covered by the national medical insurance scheme opened a new chapter today (October 30, 2025) by adding a new catalog for innovative drugs alongside the standard catalog. According to Yicai, learning from drugmakers taking part in the bargaining, talks for the innovative drugs catalog will take place after those for the basic catalog. The items included in the catalogs will receive differentiated policy support in terms of payment guarantees and clinical use, they said.
Several novel drugs are on this year’s negotiation agenda, including sacituzumab tirumotecan, a next-generation TROP2-targeting antibody-drug conjugate developed by Chengdu-based Kelun-Biotech Biopharmaceutical, as well as new therapies from foreign players such as Novartis and Novo Nordisk. Expensive chimeric antigen receptor T-cell treatments also a high-stakes area in this year’s negotiations. Among the seven CAR-T products approved in China so far, five have applied to be included in the innovative drugs catalog, three of which have also requested to be in the basic catalog.
The national medical insurance catalog is mainly compiled by the National Healthcare Security Administration and includes essential medications for common diseases, chronic conditions, along with some novel drugs, providing basic medical coverage for insured individuals. Negotiations for the innovative drug catalog are also organized by the NHSA, with commercial insurers participating in the pricing process. The drugs included in this catalog will be high-value novel medicines and rare disease treatments that are currently outside the basic catalog
Per past negotiations, the first day mainly focuses on drugs with relatively transparent pricing, such as antiviral, anti-infection, chronic disease, and anesthetic analgesic medications. But it may also include some rare disease drugs. Negotiations for medicines that are more challenging, including cancer therapies, are typically scheduled for later. Pricing lies at the heart of the talks. The National Healthcare Security Fund and pharmaceutical companies need to reach agreement on the eligibility and payment standards for drugs.
Meanwhile, the national centralized drug procurement negotiations launched earlier this month could further lower the buying costs for drugs already in the medical insurance catalog, making it cheaper for patients. Even drugs not yet listed may leverage the bulk-buying program to enlarge their market share. (Source: Yicai Global)