‘Korea Passing’ Xolair returns for second attempt on DREC

HIRA discloses deliberation result, Liporaxel feasible for coverage if it accepts proposed pricing

Although it abruptly dropped out from pricing negotiation in Korea for a better reimbursement listing in China, Novartis’ asthma treatment Xolair (omalizumab) has crossed the first threshold of reimbursement listing in Korea.

 

Daehwa Pharmaceutical’s Liporaxel would proceed to negotiate pricing with National Health Insurance Service (NHIS) if it accepts the weighted average pricing proposed by Health Insurance Review and Assessment Service (HIRA).

 

HIRA (President Kim Seung-taek) has unveiled the result of pharmaceutical reimbursement feasibility review during the third Drug Reimbursement Evaluation Committee (DREC) session of 2020.

 

Novartis’ allergic asthma treatment Xolair injection and Xolair prefilled syringe, AbbVie Korea’s treatment for moderate to severe psoriasis Skyrizi prefilled syringe (risankizumab), Lilly Korea’s breast cancer treatment Verzenio tablet (abemaciclib), and Daehwa Pharmaceutical’s stomach cancer treatment Liporaxel solution (paclitaxel) were on the committee’s agenda.

 

DREC acknowledged the feasibility of reimbursement for Xolair, Skyrizi and Verzenio.

 

The respective companies would be negotiating their pricing with NHIS for 60 days, when Ministry of Health and Welfare (MOHW) gives an order for the negotiation with NHIS.

 

As for Xolair, it received DREC’s nod in 2018 and started negotiation with NHIS immediately, but it withdrew the listing process amid the negotiation on Dec.

 

20 of the year.

 

The global company has given up on reimbursement listing in Korea back then, as the Chinese health authority has decided to refer to drug pricing in Korea right when the negotiation with NHIS initiated.

 

The incident was branded as the first ‘Korea Passing’ phenomenon.

 

After receiving reimbursement on Xolair in China last year, Novartis has been working on pharmacoeconomic analysis for the second attempt at reimbursement listing in Korea.

 

Started the reimbursement listing procedure from 2018, Liporaxel would earn the rights to initiate drug pricing negotiation with NHIS if it accepts the HIRA’s evaluated pricing (weighted average pricing).

 

The treatment would remain non-reimbursed, unless Daehwa Pharmaceutical takes the proposed pricing.

 

The outcomes of DREC deliberation could be altered depending on changes in detailed reimbursement scope and standard item, and also changes in approved item’s label and license termination.

 

Due to the COVID-19 outbreak, the DREC meeting sessions from Mar.

 

3 to 4 were substituted to on-paper review.