Novo Nordisk Takes a Hit on China Insulin Price Reductions

Last week, stock prices of two global insulin-manufacturers (Novo Nordisk and Lilly, but Novo Nordisk suffered far more than Lilly did) took a hit on news related to their Chinese operations (seehttps://www.fiercepharma.com/pharma-asia/novo-nordisk-sanofi-eli-lilly-cut-insulin-price-china-s-latest-vbp-off-patent-drugs ANDhttps://endpts.com/china-boasts-48-price-cut-on-insulin-as-domestic-drugmakers-eclipse-big-pharma-in-bulk-order/ for more). Inclusion in China ' s National Reimbursement Drugs List requires volume-based procurement (VBP) discounts. Chinese sales have enabled a number of drug companies to pump-up their sales growth in recent years, but having to sell the drugs at a discount cuts into their margins. According to shareholder disclosures made by Novo Nordisk, last month, China ' s National Healthcare Security Administration (NHSA) added 67 medicines which are branded drugs with no generic versions available in China including insulins for the very first time. The news hit Novo Nordisk particularly hard. Danish diabetes drugmaker Novo Nordisk A/S disclosed that its sales growth would slow by 3% in 2022 because of lower prices and reduced sales volume specifically in China. Diabetes drug makers agreed last month to cut prices by 48% on average in order to be qualified to bulk supply public hospitals. Rival Lilly, which has a more diversified revenue stream than Novo Nordisk does was also impacted by the China NHSA announcement, just not by as much as Novo Nord...
Source: Scott's Web Log - Category: Endocrinology Source Type: blogs