INDUSTRY BRIEF: Healthcare stocks under pressure as national drug list expands

Many Hong Kong-listed drugmakers on Monday announced their products that were included in the 2025 edition of China’s National Reimbursement Drug List (NRDL), which was unveiled this week. The updated list will take effect from the start of next year.

Despite receiving a potential big sales boost for newly included drugs on the latest list, the sector failed to gain traction in the market on Monday. Following a slew of announcements the day the list was unveiled, the Hang Seng Healthcare Index fell about 1.5% on the day, indicating investors remained cautious over the big discounts drugmakers usually offer to get included.

Livzon Pharma (1513.HK) said a total of 194 of its products were included in the latest NRDL. Among them, Aripiprazole Extended-Release Microspheres for injection was added, Triptorelin Microspheres for injection was included for newly approved indications, and Ilprazolam Sodium injection secured a contract renewal.

Hansoh Pharma (3692.HK) announced that its flagship oncology drug Aumolertinib gained NRDL coverage for two new indications, while its Pegmolesatide injection and Tenofovir Amibufenamide tablets were successfully renewed.

Simcere Pharma (2096.HK) saidits next-generation anti-VEGF monoclonal antibody Enzeshuwas newly added to the NRDL, while Endostar secured renewal. Hutchmed’s (0013.HK) Fruquintinib, Savolitinib and Surufatinib all remained on the list after renewals. Sihuan Pharma (0460.HK) and its subsidiary Xuanzhu Pharma (2575.HK) reportedthe inclusion of Pyrotinib tabletsand the renewal of Anaprazole Sodium Enteric-Coated tablets.

Meanwhile, Innogen Pharma’s (2591.HK) GLP-1 receptor agonist Efsubaglutide Alfawas included in the NRDL for the treatment of type 2 diabetes, marking the company’s first major product poised for large-scale commercial rollout. Fosun Pharma (2196.HK) and Innovent Bio (1801.HK) also announced on Sunday that some of their products were newly added to or successfully renewed on the reimbursement list.

The NRDL is updated annually through an expert review and price negotiation mechanism led by the National Healthcare Security Administration. Once added to the list, drugs become eligible for nationwide insurance reimbursement, significantly lowering out-of-pocket costs for patients and improving access. For pharmaceutical companies, NRDL inclusion usually expands hospital coverage and prescription volume. But inclusion often requires big price concessions, which may weigh on a company’s product margins even as sales volumes improve.

By Lee Shih Ta

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