Lilly's Baricitinib Slashes Price by Over 73% to RMB 1,064 Following Inclusion in China's National Reimbursement Drug List

Eli Lilly recently announced that, effective January 1, 2021, the ex-factory price of Olumiant® (baricitinib tablets) 2 mg, a targeted therapy for rheumatoid arthritis, would be adjusted in advance to facilitate an earlier reduction of the retail price to the level covered by national medical insurance. Not long ago, this Eli Lilly product was included in the National Reimbursement Drug List; however, due to confidentiality agreements, the specific reduced price has not been officially disclosed.

In 2019, the National Medical Products Administration approved Olumiant® (baricitinib tablets) 2 mg for the treatment of moderate to severe active rheumatoid arthritis in adults. Olumiant is a Janus kinase (JAK) 1/2 inhibitor administered orally once daily. Its daily dosage is significantly lower than that of Xeljanz (tofacitinib tablets), the first drug of its class marketed in China.

The first JAK inhibitor to reach the market was tofacitinib, developed by Pfizer, which has captured a significant market share since its launch in 2012. Given the potential efficacy of JAK inhibitors across multiple autoimmune indications, pharmaceutical companies are vying to establish their presence in this space. According to incomplete statistics, seven JAK inhibitors have been approved for marketing worldwide, two of which belong to the second generation. Numerous domestic players are also actively engaging in this field.

Industry analysts previously noted that Ailiming’s biggest competitors were Humira and its subsequent biosimilars. In 2019, Humira was successfully included in the National Reimbursement Drug List (NRDL) with a 59.2% price reduction, bringing its price down to RMB 1,290. Ailiming was originally priced at RMB 3,998 per bottle (2 mg × 28 tablets). Compared with competing products such as Humira, Ailiming’s price advantage was not yet significant. Therefore, gaining NRDL coverage will be a critical factor in determining whether it can capture market share in the future.

However, the medical insurance price of Olumiant can no longer be “hidden.” According to Sina Medicine, on January 14, the Gansu Provincial Public Resources Trading Bureau issued a notice on adjusting the listed prices of certain drugs. Among them, the price of Eli Lilly’s baricitinib tablets (2 mg) was reduced from RMB 3,998 to RMB 1,064, representing a decrease of over 73.3%. The adjusted price has been implemented across the province since January 20, 2021, and remains somewhat competitive compared with similar products. Recently, Henan Province also issued a notice adjusting the price caps for three drugs—baricitinib tablets, dulaglutide injection, and fluticasone furoate/vilanterol/umeclidinium inhalation powder—with the new prices effective as of January 13, 2021.

According to the report "Outlook 2022: Global Prescription Drug Market" published by EvaluatePharma, the global market size for rheumatoid arthritis (RA) drugs is projected to reach $54.5 billion in 2022, making it the third-largest pharmaceutical market worldwide, after oncology and diabetes drugs. The market potential in this field remains substantial.