Pfizer and Innovent GLP-1 drugs clear preliminary hurdle for China insurance list
GLP-1 drugs from Pfizer (PFE) and Innovent Biologics (1801.HK) have passed a preliminary review for potential inclusion in China's basic medical insurance drug catalogue, according to a list published by the National Healthcare Security Administration, a step that could pave the way for lower treatment prices.
Pfizer's ecnoglutide and Innovent's mazdutide, both approved in China for weight management and type 2 diabetes, belong to the same class of GLP-1 receptor agonists as drugs already on the state insurance list from Novo Nordisk (NOVO), Eli Lilly (LLY) and Guangzhou Innogen Pharmaceutical Group (2591.HK).
Linda Shu, head of China healthcare research at HSBC Qianhai Securities, said she did not expect Pfizer or Innovent to pose a significant competitive threat in the diabetes segment specifically, but noted that if included on the list, the companies' drugs would likely need to be priced in line with public hospital rates. Innovent shares rose about 7 per cent following the announcement.
Novo's Ozempic became the first GLP-1 drug added to China's reimbursement list in 2022, followed this year by Lilly's Mounjaro and Innogen's efsubaglutide alfa for type 2 diabetes patients. Inclusion widens access to the drugs across China's population of 1.4 billion, though higher sales volumes are typically offset by lower prices.
Sales of Ozempic injector pens across mainland China, Taiwan and Hong Kong — Novo's largest market after the US — fell 7 per cent to roughly DKr5.4bn ($853mn) last year. GLP-1 treatment sales through the e-commerce platforms Alibaba (9988.HK) and JD.com (9618.HK) totaled about Rmb1.4bn ($207mn) in the first quarter of 2026, according to Jefferies.
A Pfizer spokesperson did not immediately respond to a request for comment. An Innovent spokesperson said only diabetes treatment would be eligible for consideration under China's medical insurance coverage rules.
Shu said the results of price negotiations with the National Healthcare Security Administration would be disclosed before year-end; drugs for which negotiations fail would not be reimbursed the following year.