China emerges as an emerging powerhouse in the global biopharmaceutical industry

[사진=헬스코리아뉴스 D/B]  Shanghai, China
[사진=헬스코리아뉴스 D/B]

[헬스코리아뉴스 / 박민주] As competition in the global biopharmaceutical industry intensifies, China is emerging as a new powerhouse in the market. Franck Le Deu, senior partner at McKinsey, a multinational accounting and consulting firm, recently analyzed the driving force behind China’s rapid growth in the biopharmaceutical industry and its impact on the industry in the future.

It is analyzed that China has secured a position in the global biopharmaceutical industry based on △financing △CDMO (consignment development and manufacturing), CRO (contract research) △ securing human resources, △new drug development, △clinical testing, △commercialization and approval.

First of all, China’s funding capacity is rapidly increasing. The cumulative market value of Chinese companies listed on NASDAQ in the United States has risen sharply from $1 billion in 2016 to $180 billion in May 2021. In particular, two of the top 10 global healthcare venture capital (VC) funds (Hillhouse Capital Group and Qiming Venture Partners) are Chinese funds.

CDMO has already established a global manufacturing network with some Chinese companies. Chinese company Wuxi Biologics, a leading CDMO in the bio field, has facilities in Singapore, Ireland and the United States, and CARsgen is preparing to establish a CAR-T-related research center and manufacturing facility in North Carolina. In the case of CROs, service providers spanning the US and China serve global customers.

With China’s growing role in the global talent market, some Chinese companies are rapidly shifting their talent acquisition from China to a global one. China has been hiring former multinational pharmaceutical companies as key CEOs. China’s BeiGene recently hired Pfizer as Senior Vice President, and Zai Lab as Genentech’s President of Global Development. They are all American nationals.

In addition, China is focusing on innovation in biopharmaceuticals and expanding the scope of new drug development in all disease fields. It is focusing on the development of anticancer immunotherapeutic drugs, and it is estimated that 18% of the early stage anticancer drugs currently being developed in the world are being developed in China. In addition, China’s market share in the development of next-generation anticancer drugs is expected to approach 13%. In particular, the innovativeness of the Chinese biopharmaceutical industry is accelerating the spread of its scope and scale.

In addition, China occupies a large proportion in the clinical trial sector of the biopharmaceutical industry, participating in about 21% of the phase 3 clinical trials of 25 global biopharmaceutical companies. In particular, access to large-scale patients is increasing, and many clinical trial centers are trending towards reaching international quality standards.

Meanwhile, some Chinese companies are stepping up their commercialization and licensing activities in the US. Chinese companies such as BeiGene and HutchMed are gaining a foothold in the US by launching new drugs in the US market. In addition, some US companies are pursuing a strategy to launch innovative new drugs in the US after they have been approved in China.

In the meantime, multinational pharmaceutical companies based in Europe and the United States have been leading the global biopharmaceutical industry. It is noteworthy whether the rapid growth of Chinese-based companies can change the flow of industry that has been going on for a long time.

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