Daiichi Sankyo to build manufacturing facilities in China

“Invests of USD 150 million to build a manufacturing facility in Shanghai...to operate in 2030”

Enhertu to be added to China's national medical insurance reimbursement benefit list...to be applied next year

Daiichi Sankyo will build a manufacturing facility in China for its ADC (antibody-drug conjugate) anticancer drug Enhertu.

 

The plant, which will be built in Shanghai, is scheduled to be completed in 2030, and its products will be supplied to China.

 

According to KoreaBIO, Daiichi Sankyo recently announced plans to build a manufacturing facility for Enhertu in Shanghai, China.

 

A total of USD 152 million (approximately KRW 220 billion) will be invested in the construction of the facility.

 

Completion is expected in 2030.

 

Daiichi Sankyo explained that the products produced here will be supplied in China.

 

The new construction plan is attributed to the fact that Enhertu was listed for health insurance reimbursement.

 

China's National Healthcare Security Administration (NHSA) recently released the National Reimbursement Drug List for Basic Medical Insurance, Work-Related Injury Insurance and Maternity Insurance (NRDL).

 

The list includes 91 new drugs, including Enhertu, that are covered by health insurance.

 

The list includes 26 anti-cancer drugs, 15 drugs for chronic diseases such as diabetes, 13 drugs for rare diseases, 7 anti-infectives, 4 drugs for mental illness, 11 herbal medicines, and 21 other drugs.

 

Their health insurance coverage will take effect next January.

 

Pharmaceutical companies have been negotiating their drugs’ prices to be included in China's health insurance program.

 

Of the 91 items to be reimbursed next year, 89 have undergone such price negotiations.

 

The average reduction in drug prices is 63%.

 

China's health authorities estimate that CNY 50 billion (about USD 10 trillion) in patient cost savings will be realized next year through reimbursement alone.

 

However, the exact percentage reduction for Enhertu has not been disclosed.

 

Enhertu was initially approved in China in 2023 for HER2-positive breast cancer.

 

It has since been expanded to include HER2 low-expressing breast cancer, HER2-positive gastric or gastroesophageal junction cancer, and HER2-mutant NSCLC.

 

“The ADC manufacturing facility for Enhertu is expected to be operational in 2030,” said Daiichi Sankyo.

 

”This investment marks the first instance of establishing an ADC manufacturing facility in China, and the products produced here will be supplied to China.”