Pharma To Date

Gilead Sciences’ Kite Pharma is ending its eight-year joint venture (JV) with Fosun Pharma in China, marking a strategic shift in the cell therapy landscape. Fosun Pharma is set to acquire Kite’s 50% stake in Fosun Kite Biotechnology for $27 million, gaining full control over Yescarta, China’s first approved CAR-T therapy, and its sister therapy Tecartus. This move holds significant implications for the future of CAR-T therapy in China, particularly in terms of patient access, pricing, and market dynamics.

Yescarta, a CD19-directed CAR-T therapy used in large B-cell lymphoma, has faced significant hurdles in China, including high treatment costs and limited access through the state-run insurance system. Priced at 1.2 million yuan (approximately $170,000), Yescarta remains out of reach for most Chinese patients. While this is less expensive than in the U.S., China's per capita income is far lower, complicating affordability for the majority of families. Despite these barriers, more than 700 Chinese patients have received the therapy since its approval in 2021.

Fosun has made strides in addressing access issues, including collaborations with commercial insurance programs and outcome-based payment models. These initiatives have covered up to 42% of Yescarta’s cost and offer partial refunds if the treatment does not induce a complete response. Such efforts highlight the critical need for alternative pricing models to improve access to life-saving CAR-T therapies in China, particularly as national insurance is unlikely to cover these high-cost treatments.

Kite's exit is part of a broader trend of foreign pharmaceutical companies handing over control of their products to local partners in China. This strategy allows local firms to better navigate China’s complex healthcare market while ensuring continued access to innovative treatments like Yescarta and Tecartus. For healthcare professionals and pharmacists, this shift underscores the evolving dynamics of drug commercialization and market access in the rapidly growing Chinese biotech sector.

By retaining royalty rights and continuing to supply viral vectors for the therapies, Kite remains engaged in the Chinese market, ensuring its CAR-T therapies remain available to patients despite the ownership change.