AstraZeneca’s Enhertu Cancer Treatment to Be Included in China’s Health Insurance

The Chinese government has announced that AstraZeneca’s widely recognized breast cancer treatment, Enhertu, will be incorporated into its state-funded health insurance program starting at the beginning of next year.

This addition to the national reimbursement list will enhance accessibility to the medication for the general public in China. However, it is important to note that increased sales volumes usually come with price reductions, as the Chinese government anticipates substantial discounts for drugs that are eligible for this list. Earlier this year, drugs added to the list experienced an average price cut of 63 percent.

This development occurs amid an ongoing inquiry by Chinese authorities into AstraZeneca’s purported illegal sales tactics in the country.

The company, which is the largest pharmaceuticals entity in the UK, has seen its stock prices drop over 20 percent since reaching a peak in September, driven by worries regarding the extent of the investigations in its second-largest market.

While AstraZeneca maintains that it is not under direct investigation, Leon Wang, the company’s executive vice-president for international operations and president for China, has been detained by authorities in Shenzhen.

Additionally, around 100 former employees have been sentenced as part of an unrelated investigation involving alleged medical insurance fraud from three years ago, where it is claimed that patient test results were falsified to secure reimbursements for AstraZeneca’s Tagrisso cancer treatment.

The investigation is also focused on the purported unlawful importation of unapproved medications from Hong Kong to mainland China along with the questionable gathering of patient data.

This inquiry appears to involve Enhertu alongside two other cancer treatments, Imjudo and Imfinzi. AstraZeneca has noted that two current and two former executives in China are under investigation out of a total of approximately eight individuals linked to this issue.

Following the announcement of Enhertu’s inclusion in the health insurance scheme, AstraZeneca’s shares rose by 62 pence, marking a 0.6 percent increase to close at £105.94.

Enhertu stands out as one of AstraZeneca’s leading products, generating $2.7 billion in global sales during the first three quarters of this year. This treatment is specifically designed to target the HER2 protein, which is known to contribute to the proliferation of cancerous cells.

It is among 91 pharmaceuticals that have been added to the reimbursement list, which also features products from major companies such as Johnson & Johnson, Bristol Myers Squibb, Roche Holding, Sanofi, and Merck.

A number of local biotech firms, including Akeso, which gained insurance coverage for its lung cancer drug ivonescimab and cervical cancer treatment cadonilimab, were also recognized on the list.

Notably, among the newly added drugs, a historic 38 are classified as innovative medicines, as reported by China’s National Healthcare Security Administration, which manages the nation’s medical insurance initiatives.