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China’s Public Payer Challenged To Support Domestic Innovative Drug Market

But Deficit Too Big?

 
• By Dexter Jie Yan

One Chinese biotech executive is entertaining hopes of China’s domestic market for novel drugs growing to CNY300bn ($41bn). However, the country’s public payer spent just CNY90bn on such products in 2023 and is expected to increase expenditure to more than CNY100bn this year.

China domestic market
Can China’s public payer prop up the domestic novel drug market? • Source: Shutterstock

As pharma firms in China feel they can’t get enough of the reimbursement coverage for innovative drugs provided by the National Basic Medical Insurance Fund, the country’s single public payer, one question remains to be answered – how much should the fund pay to help create a domestic market that could support the growth of the novel drug sector?

Key Takeaways

  • One Chinese biotech executive is hoping for a China domestic novel drug market with combined annual revenues of CNY300bn ($41bn), roughly double the current size.

  • Other domestic pharma execs are looking to the country’s public payer to help prop up market growth

While this question has yet to gain broad traction, one industry insider is trying to approach it in a different manner. Yinxiang Wang, chairman and CEO of Beijing-based Jacobio Pharmaceuticals Co. Ltd

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