Qilu Pharmaceutical Voluntarily Reduces Gefitinib Tablet's Listed Price to RMB 498 per Box, a 69% Cut

On February 15, the Heilongjiang Provincial Drug Centralized Procurement Network issued the “Notice on Adjusting the Listed Price of Gefitinib Tablets by Qilu Pharmaceutical (Hainan) Co., Ltd.” According to the notice, the Heilongjiang Provincial Healthcare Security Administration recently received an application from Qilu Pharmaceutical (Hainan) Co., Ltd. for a price reduction of its drug product. After review, the administration approved the adjustment of the listed price for Gefitinib Tablets (specification: 0.25 g; packaging: 10 tablets/box; brand name: Yireke) to RMB 498 per box. The new listed price shall take effect as of the date of publication.

In the “4+7” centralized procurement program, which attracted the most attention from the industry at the end of 2018, AstraZeneca’s gefitinib tablets (250 mg × 10 tablets, Iressa) were offered at a new low price of RMB 547, representing a further 76% reduction on top of the 55% price cut achieved in the 2016 national health authority negotiations. This led to Qilu Pharmaceutical’s failure in its bid for the same group in the “4+7” centralized procurement.

To this end, in late 2018, Qilu Pharmaceutical proactively applied to adjust the online procurement price cap for its gefitinib tablets (specification: 0.25 g × 10 tablets) in Shaanxi Province from RMB 1,585 per box to RMB 498 per box. The adjusted price cap took effect immediately, representing a reduction of approximately 69%.

In response to the price cuts by AstraZeneca and Qilu Pharmaceutical, Zhejiang Beta Pharma’s icotinib, a competing product in the same category, has found itself in an awkward position. According to the results of the first national drug price negotiations, the winning bid price for icotinib (125 mg × 21 tablets/box) was RMB 1,399, with the possibility of future price reductions not ruled out.

Furthermore, on the same day, the Heilongjiang Provincial Drug Centralized Procurement Network issued the “Notice on Further Implementing Tax and Price Reductions for Anti-cancer Drugs.” The Notice specifies that domestically produced anti-cancer drugs included in the List of Anti-cancer Drugs (Batch 1) that have already been subject to centralized procurement in Heilongjiang Province but have not yet undergone tax and price reductions (see Appendix 1 for details) shall be listed for procurement in Heilongjiang Province only after the drug manufacturers, within the prescribed time limit, submit commitment-based declarations, undergo investigation and verification, and complete public notification, adhering to the principle that their prices shall not exceed the lowest prices already implemented in other provinces across China following tax and price reductions.

Meanwhile, for anti-cancer drugs included in the List of Anti-Cancer Drugs (Batch 1) that have not been subject to centralized procurement in Heilongjiang Province, a green channel will be established. Tax and price reductions will be made mandatory prerequisites for participation in the online procurement listing in Heilongjiang Province. Under a routine application and centralized processing mechanism, pharmaceutical manufacturers must commit to offering prices no higher than the lowest prices already implemented in other provinces across China following tax and price reductions. Only after undergoing procedures including commitment-based declaration, investigation and verification, and public notification shall these drugs be eligible for online procurement listing in Heilongjiang Province.

According to the notice, the application period was from February 18 to March 4, 2019. Relevant pharmaceutical companies applying for tax and price reductions on anticancer drugs were required to submit the “Letter of Authorization from the Legal Representative,” the “Application Letter for Tax and Price Reductions on Anticancer Drugs in Heilongjiang Province,” and the “Application Information Form for Tax and Price Reductions on Anticancer Drugs in Heilongjiang Province.”

YiGu Chain

《National Summary of the Implementation of the “4+7” Policy》