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Price negotiation and pricing of anticancer drugs in China: An observational study

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  • Jing Zhou
  • Tianjiao Lan
  • Hao Lu
  • Jay Pan

Abstract

Background: While China has implemented reimbursement-linked drug price negotiation annually since 2017, emphasizing value-based pricing to achieve a value-based strategic purchase of medical insurance, whether drug prices became better aligned with clinical value after price negotiation has not been sufficiently established. This study aimed to assess the changes in prices and their relationship with the clinical value of anticancer drugs after the implementation of price negotiations in China. Methods and findings: In this observational study, anticancer drug indications that were negotiated successfully between 2017 and 2022 were identified through National Reimbursement Drug Lists (NRDL) of China. We excluded extensions of indications for drugs already listed in the NRDL, indications for pediatric use, and indications lacking corresponding clinical trials. We identified pivotal clinical trials for included indications by consulting review reports or drug labels issued by the Center for Drug Evaluation, National Medical Products Administration. We calculated treatment costs as outcome measures based on publicly available prices and collected data on clinical value including safety, survival, quality of life, and overall response rate (ORR) from publications of pivotal clinical trials. The associations between drug costs and clinical value, both before and after negotiation, were analyzed using regression analyses. We also examined whether price negotiation has led to a reduction in the variation of treatment costs for a given value. Conclusions: In this study, we found that the implementation of price negotiation in China has led to drug pricing better aligned with clinical value for anticancer drugs even after substantial price reductions. The achievements made in China could shed light on the price regulation in other countries, particularly those with limited resources and increasing drug expenditures. Jing Zhou and colleagues explore the impact of reimbursement-linked drug price negotiation on the pricing of cancer drugs in China.Why was this study done?: What did the researchers do and find?: What do these findings mean?:

Suggested Citation

  • Jing Zhou & Tianjiao Lan & Hao Lu & Jay Pan, 2024. "Price negotiation and pricing of anticancer drugs in China: An observational study," PLOS Medicine, Public Library of Science, vol. 21(1), pages 1-18, January.
    • Handle: RePEc:plo:pmed00:1004332
    DOI: 10.1371/journal.pmed.1004332
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    References listed on IDEAS

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    1. David H. Howard & Peter B. Bach & Ernst R. Berndt & Rena M. Conti, 2015. "Pricing in the Market for Anticancer Drugs," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 139-162, Winter.
    2. Yan Sun & Zheng Zhu & Jiawei Zhang & Peien Han & Yu Qi & Xiaoyang Wang & Li Yang, 2022. "Impacts of National Drug Price Negotiation on Expenditure, Volume, and Availability of Targeted Anti-Cancer Drugs in China: An Interrupted Time Series Analysis," IJERPH, MDPI, vol. 19(8), pages 1-10, April.
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