Yifan Pharmaceutical Co.， Ltd

China Establishes Initial Pricing Mechanism for New Drugs to Boost Innovation Returns

- China's National Healthcare Security Administration has officially established an initial pricing mechanism for newly launched drugs, marking a shift from cost-control to innovation-encouraging healthcare policies. - The mechanism allows high-quality innovative drugs to achieve "returns commensurate with high investment and high risk" with satisfactory price levels and five-year price stability periods. - Over 100 new price items for medical technologies including brain-computer interfaces have been added, facilitating faster clinical adoption and revenue generation for breakthrough technologies. - The policy addresses the long-standing challenge where innovative drugs faced significant price reductions to enter medical insurance coverage, severely dampening pharmaceutical innovation enthusiasm.