JP Morgan's positive analyst rating is based on the recent changes introduced by China's NHSA, which allow drugs to apply for inclusion in the National Reimbursement Drug List (NRDL) before formal approval. This is expected to reduce the time gap between drug approval and NRDL inclusion, benefiting innovative drug developers and their partners. The new linkage between commercial insurance and the NRDL also supports high-priced innovative drugs that previously faced entry barriers due to pricing issues. Overall, these changes are seen as improving the commercial outlook for the healthcare sector in China.
