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AstraZeneca's Enhertu Gains Inclusion in China's State Insurance Reimbursement Amidst Ongoing Probe

AstraZeneca's breast cancer drug Enhertu has been added to China's state insurance reimbursement list, despite an ongoing investigation into the company's sales practices.

AstraZeneca's Enhertu, a groundbreaking breast cancer treatment developed in collaboration with Japan's Daiichi Sankyo, has been approved for inclusion in China's state-run health insurance scheme. This decision, effective from January 1, marks a significant milestone for AstraZeneca, as it opens up access to a vast market of 1.4 billion people. Enhertu is an antibody-drug conjugate specifically designed to target HER-2 positive breast cancer, a condition affecting approximately 20% of breast cancer patients. The drug's inclusion in the National Reimbursement Drug List is expected to increase its availability, although it will likely come with a reduction in price, as is customary with drugs added to China's reimbursement list. The average price drop for newly included drugs is reported to be around 63%. This development comes amidst an ongoing investigation into AstraZeneca's sales practices in China, which had previously cast a shadow over the company's operations in the region. Despite this, the inclusion of Enhertu in the reimbursement list is seen as a positive sign for AstraZeneca's business prospects in China, the world's second-largest pharmaceutical market. The company has heavily invested in the region, with China contributing 13% to its overall revenue. Other pharmaceutical giants such as Johnson & Johnson, Bristol Myers Squibb, Roche, Sanofi, and Merck have also secured spots on the reimbursement list with their respective treatments for various conditions. This move by the Chinese government underscores its commitment to expanding access to essential medications for its population.

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