China's National Healthcare Security Administration (NHSA) released the "Work Plan for the Adjustment of the 2026 National Reimbursement Drug List for Basic Medical Insurance, Maternity Insurance and Work Injury Insurance and the Innovative Drug List for Commercial Health Insurance (Draft for Consultation)", introducing multiple market-friendly rule changes. JP Morgan forecast the measures to further improve the commercial outlook for China's innovative drug developers and their CXO partners.The most pivotal change is the first-time allowance for drugs to submit NRDL applications prior to formal approval, which is expected to sharply narrow the historical one- to two-year gap between drug approval and NRDL inclusion. In addition, the new plan formally establishes a linkage mechanism between commercial insurance and the national NRDL, creating a "commercial insurance coverage first, public insurance reimbursement later" model. This opens the door for high-priced innovative drugs that previously struggled to enter the NRDL due to pricing constraints. Related News M Stanley: Risk-Reward of China Biotech Stocks to Improve in 2H2026The report pointed out that the formal establishment of a bridging pathway from commercial insurance to the NRDL validates the dual-list strategy long pursued by many innovative drug companies. For drugs currently covered by commercial insurance but not included in the NRDL - often because their retail prices previously exceeded the acceptable range in NRDL negotiations - the new rules are particularly meaningful. The broker believed that clearer renewal rules will provide innovative drug companies with a more transparent long-term pricing roadmap, while the acceleration of innovative drug commercialization in China will directly benefit their CXO partners. JP Morgan reiterated its positive view on INNOVENT BIO (01801.HK) -2.050 (-2.534%) Short selling $391.98M; Ratio 32.259% , SKB BIO (06990.HK) -31.800 (-7.304%) Short selling $113.95M; Ratio 16.144% , WUXI APPTEC (02359.HK) +1.500 (+1.170%) Short selling $220.99M; Ratio 27.848% and WUXI XDC (02268.HK) +0.600 (+1.108%) Short selling $40.31M; Ratio 28.582% , naming them as sector top picks. (HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-02 16:25.)Related News M Stanley Ratings and TPs on China Biotech Stocks
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