According to the work arrangement of adjusting the national basic medical insurance, work-related injury insurance, and maternity insurance drug list in 2024, the National Medical Insurance Bureau recently conducted a preliminary review of declared drugs and announced the drugs and information that have passed the review.

From 9:00 on July 1st, 2024 to 17:00 on July 14th, a total of 626 enterprise declarations involving 574 drugs were received. After review, 440 drugs passed the preliminary review, which is more compared to 2023.

The National Medical Insurance Bureau stated that some drugs that are significantly more expensive and obviously beyond the scope of basic medical insurance have passed the preliminary review, indicating only that the drug meets the application conditions and qualifies for the next step.

Whether these types of drugs can ultimately enter the national medical insurance drug catalog still needs to go through a strict review process. Negotiations are required for exclusive drugs, while non-exclusive drugs require bidding. Only after successful negotiation or bidding can they be finally included in the catalog.

Next, based on the feedback received during the announcement period, the National Medical Insurance Bureau will further verify relevant information, determine the final list of drugs that have passed the form review, and announce it to the public.

On July 5th, the executive meeting of the State Council passed the "Implementation Plan for Supporting the Development of Innovative Drugs throughout the Entire Industry Chain". Subsequently, Shanghai released "Several Opinions on Supporting the Innovative Development of the Biopharmaceutical Industry throughout the Entire Industry Chain". Before that, Beijing, Guangzhou, Zhuhai and other places had already introduced measures to support the high-quality development of the medical industry throughout the entire industry chain.

Industry insiders believe that with policies gradually implemented, the environment for innovative drugs from financing to research and development to application promotion is expected to gradually improve. This can help enterprises bring innovative drugs to the market earlier and provide more treatment options for patients.

In the future, institutions predict that more policies aimed at the innovative development of the medical industry will be successively implemented in various regions, fully stimulating the innovation vitality of the industry, accelerating the high-quality development of innovative drugs, and promoting the upgrading of China's innovative drug industry.

Sinolink Securities released a research report stating that from the current situation, it is expected that medical insurance, medical and pharmaceutical reform policies will tend to be stable and the market's early excessive concerns are expected to ease. After passing the half-year report window, the performance of the pharmaceutical industry in the second half of the year is expected to see overall year-on-year improvement and month-on-month increase. Considering the decreasing proportion of public fund pharmaceutical allocation in the first half of the year, the team believes that the golden opportunity to increase the pharmaceutical sector has opened.

Partial leading companies in the biopharmaceutical sector:

Shanghai Pharma (02607), Grandpharma (00512), Beigene (06160), Innovent Bio (01801), CSPC Pharma (01093), Luye Pharma (02186), Hutchmed (China) (00013), Akeso (09926), Kangze Pharmaceutical (00867), Junshi Bio (01877), Cansinobio (06185) and so on.