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China has approved 19 innovative medicines — including major treatments from Eli Lilly, Pfizer, and Johnson & Johnson — for its first commercial health insurance drug catalog, creating a new pathway for companies to sell advanced therapies at better prices.

The announcement was made Sunday in Guangzhou, marking a major shift in how China plans to support costly drugs that are too expensive for its state insurance program.

The new list includes medicines for cancer, Alzheimer's disease, and rare genetic conditions.

Officials say the catalog is meant to ease pressure on China's national insurance system, which covers almost the entire population and has long required deep price cuts from drugmakers.

With more older adults needing treatments for cancer, dementia, and diabetes, the change reflects China's growing need for affordable but effective healthcare options.

According to BusinessStandard, Drugmakers had to negotiate special discounted prices with the government to join the catalog. These prices will now be available to all private insurers.

The goal is to expand commercial insurance, which currently plays only a small role in helping Chinese patients pay for innovative drugs.

Bloomberg Intelligence analyst Jamie Maarten said the new catalog helps global companies that could not meet the steep discounts required for the national list.

She noted the negotiations also allow Chinese drugmakers to protect their overseas pricing because the deals remain confidential.

The approved drugs include Eli Lilly's Kisunla and Eisai's Leqembi for Alzheimer's, along with cancer treatments from Pfizer, Johnson & Johnson, and Bristol-Myers Squibb.

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Several Chinese companies also earned spots, including five producers of CAR-T cell therapies used to treat certain cancers. BeOne Medicines was the only company with two drugs selected.

Officials did not reveal the final discount amounts, though earlier reports suggested reductions between 15% and 50% — far smaller than the 60% price cuts common under the national system, Bloomberg reported.

Out of 24 drugs that reached final negotiations, only 19 made the list, which analysts say shows regulators are moving cautiously during the first year of the program.

For years, China's national insurance program used its power to demand low prices from drugmakers, making it difficult for companies selling expensive new therapies.

Some multinational firms accepted those cuts, while others focused on smaller markets of private-pay patients.

Local biotechs producing high-cost treatments, like CAR-T therapies, also struggled to earn enough revenue for long-term growth.

While this year's list is small, analysts expect the catalog to expand to about 300 drugs by 2027.

The release came alongside an update to China's national drug list, which added 114 medicines, including Lilly's diabetes drug Mounjaro. Both lists will take effect on January 1.

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China, Eli Lilly, Pfizer