Novo Nordisk becomes first pharmaceutical to sign bilateral APA with China

Novo Nordisk has concluded a bilateral advance pricing agreement (APA) with the Chinese tax authorities, Lilly Yang, Senior Finance Director at Novo Nordisk China, announced on LinkedIn on February 27.

This is the first bilateral APA concluded between a pharmaceutical company and China, Yang said.

APAs are agreements between multinational group taxpayers and tax authorities that are designed to avoid future transfer pricing disputes by settling transfer pricing methods in advance for future years.

Headquartered in Bagsværd, Denmark, Novo Nordisk, sells pharmaceutical products including diabetes care medications and devices in more than 170 countries.