Merck's Keytruda Finds Fast Entry Into China Via Medical-Tourism Push

BEIJING -- Merck & Co.'s immunotherapy cancer drug Keytruda is finding its way into China as the first imported drug approved for use under a pilot program on the resort island of Hainan intended to boost medical tourism.

The fast-track entry for Keytruda into China, albeit limited, is likely to give Merck an advantage in competing with Bristol-Myers Squibb Co., which is also seeking approval in China for its rival drug Opdivo. Both companies had faced a lengthy approval process required by Chinese regulators.

An institution affiliated with Hainan Health and Family Planning Committee announced on its account on the WeChat messaging platform late Thursday that Keytruda will be the first imported drug used in a cancer hospital in the Boao Lecheng International Medical Tourism Pilot Zone in Hainan.

Set up in 2013, the zone sets special rules on foreign investment, such as 100% foreign ownership in hospitals and fast-track approvals for new drugs and medical devices. The hospital gained approval from the China Food and Drug Administration to import Keytruda this March, and will import more foreign cancer drugs based on patients' need, according to the announcement.

It wasn't known what indications for the drug's use the approval for the Hainan hospital covered, or how it would be priced.

Merck's representatives in China didn't reply to requests for comment.

Chinese patients have increasingly traveled overseas to access new therapies.

The pilot zone in Boao is likely to attract Chinese patients that would otherwise travel to Hong Kong and Macau for drugs that have yet to be approved by the CFDA.

Major drugmakers are trying different ways to enter the Chinese market, such as producing locally or working with local partners to qualify for priority-review status. China's drug regulator said last year that it will prioritize innovative medicines that address unmet medical needs.

Keytruda was approved in the U.S. for treating cancers including melanoma and certain types of lung cancer.

In March, Premier Li Keqiang visited the pilot zone, which is China's first medical-tourism center, and stated that medical tourism has the potential to improve people's livelihood with a new business model that combines medical care with a vacation.

Fanfan Wang contributed to this article

(END) Dow Jones Newswires

September 23, 2016 09:26 ET (13:26 GMT)

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