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    Home > Active Ingredient News > Drugs Articles > How about the "money view" of China

    How about the "money view" of China

    • Last Update: 2018-06-28
    • Source: Internet
    • Author: User
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    Guiding the reading of the stones of other mountains can be used to attack jade, and new knowledge can be obtained from the views of others This article is an explanation of the medical payment system of China by foreign media for foreign industry, but the explanation and analysis of the system is not clear It will take about 5 minutes to read the full text If you have any inspiration from this article, please click the comments at the end of the article In China's pharmaceutical market, internationally renowned pharmaceutical companies and investors are all in, because they make a lot of money by bringing innovative new drugs to Chinese patients who have no choice for a long time However, China's medical system is very different from that of the United States How can pharmaceutical companies dig gold from the Chinese market? Recently, stat, the US medical media, invited experts to analyze and outline the scenario of medical insurance payment in China The article believes that China's rise as a biotech power will also become the next frontier to deal with the thorny challenges of drug pricing This article also provides us with an interesting unique perspective of "bystanders see clearly" Who is the real buyer of innovative drugs in China? In China, there are three main channels for drug payers First, in China, a very small number of people pay for their medicines through private insurance, which is usually funded by multinational companies or large Chinese enterprises and other employers About 5% of Chinese are believed to have private health insurance, but that number is rising as the white-collar class in China grows Second, the patient is conceited This is also the main way to pay for innovative new drugs Patients who pay for their own drugs receive some financial assistance through the patient assistance program In the United States, patient assistance programs usually reduce the copay of uninsured or underinsured patients, while in China, multinational pharmaceutical companies will give discount prices to self paid patients for drug availability For example, for a drug that needs to take six months, a Chinese patient may reach a plan of "buy four months' dose and give two months' free dose", and the drug companies will subsidize the cost Third, national medical insurance China is a single payer health care system, which can be compared with the Medicare program for the elderly in the United States, but there are some key differences For example, China's health insurance system covers more people, and now provides basic health insurance for 95% of the national population However, there is no insurance plan similar to the U.S supplementary medical insurance (mediap), and American patients can buy mediap to pay for medical expenses that Medicare fails to cover If the Chinese government is willing to include a drug in healthcare, Chinese patients may need to pay 20% of the co payment amount, which is the same as that of some American patients who join Medicare How can innovative drugs enter the government's health insurance system? The most important step is to go to the national reusable drugs list However, the Chinese government only pays for a small number of new drugs Historically, it took many years for a new drug to be approved by the government to be included in the medical insurance catalog Sometimes, some drugs have not been included in the national medical insurance catalog until a generic drug is available But stat also acknowledged that the process of bringing new drugs into the Medicare catalog is accelerating Steve Rosen, a senior partner at Simon kucher & partners, a consulting firm that tracks China's biotechnology and drug market access trends, said that when innovative new drugs enter the Chinese market, "when a new drug comes out one to two or three years later, the government may invite it to negotiate health care." In most cases, medical insurance negotiation will lead to drug companies to reduce the price of new drugs, sometimes even by a very large margin, in order to occupy a "coveted" position in the "national medical insurance catalog" Is everything going well after new drugs are included in the medical insurance catalogue? Far from it Access to the national health insurance catalog is a key step, but drug makers need to persuade more than 30 provinces (cities and districts) to pay for their drugs, which is a high price The trouble is that not all provinces are "born equal": poor provinces have limited capacity to pay, and some try to give local drug makers pricing advantages at the expense of outsiders As a result, the price of the same drug will vary significantly in many provinces of China Cao Wuxiong, general manager of Kangqiao capital, who is based in Boston, said that in response to this situation, some pharmaceutical companies adopt the strategy of simply giving up those provinces that cannot control the drug price as they wish, because they are worried that this will create a low price precedent, which was cited by other provinces in the negotiation as an example Next, pharmaceutical companies have to face another challenge: persuading many hospitals, which dominate China's health care system, to give priority to prescription drugs, sometimes in exchange for price cuts "The real battle is at the hospital level," Cao said Cao Wuxiong said it was a "life and death" battle, and many pharmaceutical companies had to say their goal frankly: "to ensure that their own drugs enter the hospital's prescription list, while competitors' drugs are squeezed out." Does China have the conditions to ensure that innovation is paid for? Unfortunately, stat concluded: not yet Brad Loncar, an investor in biotechnology, has also created a market index to track China's booming biomedical industry, saying that in China "four to five factors converge at the right time, indicating that China may have a truly booming biotechnology industry." In my opinion, the missing link is compensation incentive " What happened to pricing when other innovative drugs were introduced into the Chinese market? To get patients to use more new drugs, China last year added 36 new drugs to the national health insurance catalog, including the world's best-selling drugs for diabetes, cancer and heart disease Among them is bevacizumab, Roche's best-selling tumor drug When the drug first entered the Chinese market, Roche priced it at US $11600 per course, and almost all of it was purchased by self paid Chinese patients It also means that few people can afford it To add to the national health insurance catalog, Roche agreed to cut prices by 62% to $4400 per course How to price the cancer immunotherapy in China? Analysts predict that BMS will price China's first approved cancer immunotherapy drug, opdivo, between $60000 and $90000, which is much lower than the price of opdivo in the US of $157000, but still more than most self paid Chinese patients Priyanka Shah, a spokesman for BMS, said it was in the process of submitting opdivo "pricing materials" to Chinese regulators She said that the pricing of opdivo in the Chinese market will take into account the value of drugs, the affordability of Chinese patients and the huge demand that China still needs to meet Opdivo is a PD-1 inhibitor immunotherapy drug At present, four other pharmaceutical companies have submitted their own applications for listing of PD-1 inhibitor cancer drugs to China's drug regulatory authorities There are dozens of PD-1 inhibitor immunotherapy drugs in clinical research and development stage in China Hogg expressed concern about the market prospect of PD-1 inhibitor immunotherapy drugs in China "The risk of the price of PD-1 inhibitor immunotherapy drugs falling below the bottom line in China is likely to be greater than in the west," he said If all you see is the same drug, whether from the perspective of efficacy or from the perspective of safety, I think it is likely to evolve into a price war to the end " Will we see China's drug prices rising over time? Don't be delusional In general, China's drug prices will drop over time, and they will drop sharply in exchange for entering the national health insurance catalog What happened in the European market can be taken as a good example In contrast, in the past few years, drug prices in the United States have skyrocketed to the top of newspapers, which is almost unique to the United States.
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