Chenxi Health and Fosun Kite Enter Strategic Partnership to Advance CAR-T Therapy Access and Expand into Southeast Asia

China Securities News (reporter Ni Ming) — On March 1, Beijing Medi Cover Health Technology Co., Ltd. ("Medi Cover"), a subsidiary of Sinopharm Group, and Fosun Kite Biotechnology Co., Ltd. ("Fosun Kite") signed a strategic cooperation agreement in Shanghai. The two parties announced a strategic partnership to jointly provide high-quality CAR-T treatment services for patients in China and become exclusive partners to expand into the Southeast Asian market, benefiting more overseas patients.

CAR-T Indications Expected to Expand Further

CAR-T therapy is considered one of the most promising treatments in the field of cell therapy and is mostly used in the treatment of hematologic malignancies. In June 2021, Fosun Kite's CAR-T cell therapy drug Yikaida (Axicabtagene Ciloleucel Injection) was launched, becoming the first CAR-T cell therapy drug approved for marketing in China. Yikaida has not yet been included in the basic medical insurance reimbursement scope in China and requires full out-of-pocket payment by patients.

Currently, Yikai Da is mainly used to treat adult patients with relapsed or refractory large B-cell lymphoma who have received second-line or above systemic treatment. According to Huang Hai, CEO of Fosun Kite, Fosun Kite is actively expanding more indications for Yikai Da, developing new target technologies, and accelerating the R&D process in the field of solid tumors. The company strives to launch at least one new product/new indication every year to better serve a wide range of cancer patients.

As an important part of the strategic cooperation, Medi Cover's CAR-T rights users can be the first to enjoy indication expansion and a series of CAR-T therapy medical professional services provided by Fosun Kite.

Improving the Accessibility of CAR-T Therapy

Qi Yuanyuan, CCO of Fosun Kite, stated: "Fosun Kite is dedicated to the research and development, industrialization, and commercialization of tumor cell therapy products. Currently, China has become the world's second-largest pharmaceutical consumer market. We look forward to deepening our cooperation with Medi Cover to address the pain points in commercial insurance payments and provide high-quality CAR-T treatment services to patients. We believe that with the coverage of commercial insurance, the financial burden on the payment side will be alleviated."

Medi Cover CEO Li Wei stated: "As an important commercial insurance partner of Fosun Kite Biotechnology Co., Ltd., Medi Cover will collaborate to build a multi-layered CAR-T treatment security system through city-wide inclusive insurance, commercial health insurance, and rights-based services. This will enhance the accessibility of CAR-T drug therapy, making this cutting-edge treatment affordable for more patients to benefit from its health advantages."

Medi Cover has partnered with multiple insurance companies to promote the inclusion of Yikaida in Beijing's "Jinghuibao," Shanghai's "Huhuibao," Chongqing's "Yukuai Bao," Hebei's "Yanzhao Health Bao," Tangshan's "Huitang Bao," and other municipal惠民保 across 10 provinces and cities, as well as in more than 10 commercial health insurances and CAR-T benefit services, which are innovative commercial health insurances.

Taking "Hu Hui Bao" as an example, within just one month after the inception of "Hu Hui Bao," Medi Cover's claims team assisted insurance companies in completing two CAR-T special drug claims, with a total payout of 1 million yuan. They promptly coordinated with professional pharmacies to deliver the medication to users. To date, Medi Cover has handled over 20 CAR-T claims cases for the 2022 version of "Hu Hui Bao."

Zhao Min, General Manager of the Innovation Center of Sinopharm Holding Co., Ltd., stated: "As a strategic shareholder of Medi Cover, Sinopharm Holding will also fully utilize its supply chain and pharmacy network resources to jointly focus on the distribution of CAR-T treatment drugs in specialty pharmacies, optimization of service processes, and upgrading of the drug distribution quality system, providing better services for patients."

This collaboration also signifies that both parties will jointly advance the international journey of Chinese CAR-T therapies. According to the agreement, the two parties are exclusive partners, working together to promote the commercial implementation of CAR-T therapy in the Southeast Asian market. Fosun Kite Biotechnology Co., Ltd., leveraging its localized service capabilities, will provide corresponding pharmaceutical services for CAR-T treatments to patients from Southeast Asia seeking treatment in China. Medi Cover, utilizing its insurance resources in the Southeast Asian market, will offer commercial insurance payment solutions for patients undergoing CAR-T therapy.

"Both parties will build on the continuously improving application experience in China, with the hope that more patients at home and abroad will benefit from CAR-T therapy in the future," said Zhang Di, General Manager of the Innovation Health Insurance Division of Medi Cover.