Pfizer Inc. (NYSE: PFE) CEO Albert Bourla, speaking on the sidelines of the JPMorgan Healthcare conference in San Francisco, denied that talks were being held with the Chinese government on potentially licensing Paxlovid (nirmatrelvir, ritonavir) to local generic firms in China. Bourla’s comments countered a report from Reuters that claimed discussions on licensing Paxlovid for manufacturing and commercialization to local firms were underway.
Existing Manufacturing Agreement
Bourla noted that Pfizer already has an agreement for local manufacturing of Paxlovid in China, referring to the licensing deal with Zhejiang Huahai Pharmaceutical Co., Ltd, signed in August 2022. Although local manufacturing has yet to commence, Bourla stated that “millions” of courses of Paxlovid have been shipped to the market.
Pricing Talks with NHSA
Over the weekend, pricing talks between the National Healthcare Security Administration (NHSA) and Pfizer for Paxlovid to be included in the National Reimbursement Drug List (NRDL) broke down. Bourla commented on the talks, stating that the price demanded by the NHSA was lower than Pfizer’s standard set for lower middle-income countries. He said, “They are the second highest economy in the world, and I don’t think that they should pay less than El Salvador.” As a result, Paxlovid will be primarily aimed at the private market in China.
Future Outlook
Albert Bourla’s statements clarify Pfizer’s stance on the licensing and pricing of Paxlovid in China. With an existing manufacturing agreement in place and ongoing shipments of the drug, Pfizer remains focused on meeting the demand for Paxlovid. The breakdown in pricing talks with the NHSA underscores the complexities of drug reimbursement negotiations, particularly in major economies. Pfizer’s strategy to target the private market in China highlights its commitment to making Paxlovid available to patients while maintaining its pricing standards.-Fineline Info & Tech
