NHSA Introduces New Measures to Support the High-Quality Development of China's Innovative Drug Sector

On July 1, the National Healthcare Security Administration (NHSA) held a press conference to introduce the Measures to Support the High-Quality Development of Innovative Drugs. Since its establishment in 2018, the NHSA has promoted reforms in the management of the medical insurance drug list. While adhering to the principle of "ensuring the basics," the administration has provided strong support for innovative drug development. Over seven rounds of adjustments, 149 innovative drugs—mainly Category 1—have been included in the medical insurance list, significantly improving access to new and high-quality drugs. As of May 2025, the medical insurance fund has paid RMB 410 billion for negotiated drugs under agreements, leading to over RMB 600 billion in related drug sales.

China’s innovative drug sector has witnessed rapid development in recent years, with continuous emergence of new drugs and technologies. However, challenges persist, including intensified competition, a mismatch between enterprise price expectations and the affordability of the medical insurance system, and the need to better utilize diversified payment mechanisms.

With the approval of the State Council, the NHSA and the National Health Commission jointly issued the Measures to Support the High-Quality Development of Innovative Drugs on June 30, 2025. The document focuses on prominent issues in innovative drug development and presents 16 specific measures across five areas, aiming to support R&D, market access, hospital usage, and diversified payment. It emphasizes genuine support for innovation and encourages differentiated innovation. The measures are intended to promote a development environment centered on clinical value, establish a diversified payment system, and enhance accessibility. By using healthcare data, encouraging investment, guiding inclusion in the drug list, and supporting major national science and technology projects, the measures are designed to match R&D more closely with clinical needs. The inclusion of innovative drugs in commercial insurance lists and promotion of their international expansion are also highlighted. Additionally, efforts will be made to improve accessibility through policies on procurement, hospital admission, reimbursement, and inventory.

The NHSA and the National Health Commission will work to implement these measures, in line with the decisions of the Central Committee of the Communist Party of China and the State Council, to support the high-quality development of China’s innovative pharmaceutical industry and better safeguard public health.