China slashes tax for imported rare disease drugs

Chinawill cut import value-added tax (VAT) from 16% to 3% on the first batch of rare disease drugs from March 1, according to the new policy of China’s National Medical Products Administration (NMPA), formerly known as CFDA, reports The Pharma Letter’s local correspondent, Wang Fangqing.

The listed 21 drugs include Johnson & Johnson’s (NYSE: JNJ) Tracleer (bosentan) and Remodulin (treprostinil) from United Therapeutics (Nasdaq: UTHR) to treat pulmonary arterial hypertension, J&J/Actelion’s Zavesca (miglustat) for treating type I Gaucher disease, and Boehringer Ingelehim’s Ofev (nintedanib) for idiopathic pulmonary fibrosis.

Four imported active pharmaceutical ingredients for rare disease drugs will also enjoy the same tax cuts. They are bosentan, pirfenidone, riluzole and penicillamine.