(Yicai) Sept. 1 -- Oncology company BeOne Medicines has agreed to reduce the price of Tevimbra, an innovative oral anticancer drug used to treat esophageal carcinoma, under the Medicaid healthcare program in the United States.

Nine pharmaceutical companies, including BeOne Medicines, agreed to lower their prescription drug prices under Medicaid to align with the minimum prices set by other developed countries (the Most Favored Nation drug pricing policy), the US government announced after the New York market closed yesterday. The drugs, including Tevimbra, will be provided to eligible patients at an agreed-upon price.

Medicaid is designed for individuals who meet specific eligibility criteria, covering children, pregnant women, the elderly, people with disabilities, and certain vulnerable populations. Many of these people may face financial challenges when accessing medical services.

BeOne Medicines said the voluntary agreement is a market-specific arrangement tailored to the US healthcare payment system and policy environment, aimed at enhancing access to innovative drugs and allowing more patients to benefit from them.

BeOne Medicines will not disclose any financial information related to the agreement due to the confidentiality of some specific terms, a representative for the Basel-based company told Yicai.

However, BeOne Medicines estimates that the patient population covered by the voluntary Medicaid agreement accounts for only about 8 percent of the US patient population eligible for Tevimbra’s approved indications in the US.

In May last year, US President Donald Trump signed an executive order requiring Medicaid to reference the lowest drug prices from other developed countries. Twenty-six pharmaceutical firms have reached MFN drug pricing deals with the US government, covering 89 percent of the local brand drug market. The government said it will continue to encourage more manufacturers of original brand drugs and biologics to participate.

Shares of BeOne Medicines [SHA: 688235] closed 1.2 percent lower at CNY266.69 (USD39.68) apiece in Shanghai today, while its Hong Kong-listed stock [HKG: 6160] fell 0.5 percent to HKD214.40 (USD27.34). Its shares in New York [NASDAQ: ONC] ended down 2 percent yesterday.

Tevimbra is marketed in more than 50 markets, with global sales reaching almost CNY3 billion (USD446.4 million) in the first half of this year, accounting for around 13 percent of BeOne Medicines’ total revenue. The company has never disclosed the drug’s US sales.

The US Food and Drug Administration approved Tevimbra for the treatment of unresectable advanced or metastatic esophageal squamous cell carcinoma in March 2024. The drug has received approval for four indications in the US, all for gastrointestinal tumors.

BeOne Medicines has two other products approved in the US, with Brukinsa, used for the treatment of mantle cell lymphoma, bringing in the most income at CNY11.4 billion (USD1.7 billion) in the first half.

Editors: Tang Shihua, Martin Kadiev