Home Eli Lilly's Pemetrexed Disodium Sees First Major 30% Price Cut Amid China's 4+7 Volume-Based Procurement Pressure

Eli Lilly's Pemetrexed Disodium Sees First Major 30% Price Cut Amid China's 4+7 Volume-Based Procurement Pressure

Jul 06, 2019 18:16 CST Updated 18:16
Eli Lilly

Global Pharmaceutical R&D and Production Company

Pemetrexed is a multi-targeted antifolate agent belonging to the class of antimetabolites. It inhibits tumor growth by disrupting normal folate-dependent metabolic processes within cells, thereby suppressing cellular replication. On February 4, 2002, Eli Lilly’s pemetrexed was approved by the FDA as an orphan drug for use in combination with cisplatin in the treatment of malignant pleural mesothelioma. Subsequently, it received approval for second-line treatment, first-line treatment, and maintenance therapy of non-squamous non-small cell lung cancer in 2004, 2008, and 2009, respectively.


Alimta (pemetrexed for injection) is a commonly used chemotherapy drug for lung cancer in clinical practice and one of Eli Lilly’s best-selling products; even after its patent expired, its global sales reached $2.133 billion in 2018.



There are 19 manufacturers of pemetrexed disodium for injection in China (including Eli Lilly), but only Sichuan Huiyu has passed the consistency evaluation. Therefore, in the “4+7” city centralized volume-based procurement held last December, Sichuan Huiyu easily won the bid with an absolute price advantage, becoming one of only three injectable products among the first batch of 25 winning varieties.



Following the announcement of the “4+7” centralized procurement results, some manufacturers that failed to win bids proactively implemented significant price reductions. However, Eli Lilly’s Alimta (pemetrexed disodium for injection) had previously shown no notable price flexibility. On April 9 this year, the Shandong Public Resources Trading Center, which serves non-“4+7” cities/provinces, issued the “Notice on Price Reductions for 12 Anticancer Drugs Including Pemetrexed Disodium.” Alimta saw only a symbolic, modest price cut of a few hundred yuan.



However, on July 5, Gansu and Zhejiang—two provinces/cities not included in the “4+7” centralized procurement program—sequentially released information on price reductions for the originator product of pemetrexed disodium for injection, indicating a strong willingness on the part of the originator manufacturer to significantly lower prices.



Zhejiang Province has not disclosed specific prices. However, according to an announcement published on the Gansu Provincial Centralized Procurement Website for Drugs and Medical Consumables, at the request of the manufacturer, the prices of Eli Lilly’s pemetrexed disodium for injection (100 mg and 500 mg) have been reduced to RMB 2,142 and RMB 7,315, respectively, representing a 30% decrease from their previous prices (see table below).

 


However, after Eli Lilly’s price reduction, the prices of two different specifications of pemetrexed for injection remain approximately 2.6 times those of Sichuan Huiyu’s products.


Currently, the consistency evaluation for pemetrexed disodium for injection is underway among major manufacturers such as Hansoh, Yangtze River, and Qilu.