China will add Eli Lilly Mounjaro’s diabetes drug to its state health insurance list on Jan. 1, expanding access to the once-weekly treatment for millions as officials negotiate lower prices to widen availability.
China Expands Coverage for Type 2 Diabetes Patients
China’s National Healthcare Security Administration announced the inclusion in a notice Sunday, placing the drug on the national reimbursement list for the first time. The move aims to make the medication more affordable in a country with more than one billion people and a rising diabetes burden.
Mounjaro, known generically as tirzepatide, was introduced in China in January after Novo Nordisk’s Ozempic entered the market in 2021. Ozempic joined the reimbursement list in 2022 and has since reported rising demand in the region.
“The addition of Mounjaro will improve treatment options for patients who need consistent and effective diabetes care,” said Li Qiang, a Shanghai-based health policy analyst. “Coverage under the national scheme typically boosts usage even if prices fall.”
Market Competition Strengthens as Volumes Rise
While listing usually drives higher sales volumes, negotiated price cuts often offset revenue gains. Eli Lilly Mounjaro has not disclosed the government-approved price for Mounjaro under reimbursement.
Novo Nordisk reported Ozempic sales of 5.76 billion Danish crowns in greater China in 2024, underscoring the growing demand for advanced diabetes therapies. Analysts say Mounjaro’s entry into the reimbursement system could intensify competition between the two multinational drugmakers.
“China is a priority market for all major diabetes drug manufacturers,” said Chen Mei, a Beijing-based pharmaceutical consultant. “Reimbursement can significantly shift market share, especially in therapies for chronic diseases.”
Lilly Anticipates Stronger Global Growth
Eli Lilly Mounjaro has reported strong international momentum for Mounjaro. In an October earnings call, Patrik Jonsson, the company’s international president, said Lilly saw “initial stocking” in China, Brazil, Mexico and India during the second quarter.
“Since then, we have seen a lift in the performance also in those markets in Q3 and a continued very strong performance globally,” Jonsson said on the call.
In China, Mounjaro is also approved for obesity and obstructive sleep apnea, expanding its potential patient base beyond diabetes treatment.
The National Healthcare Security Administration said the updated reimbursement list will take effect nationwide on Jan. 1.
