Reference News Network, July 15 - According to Bloomberg News on July 14, China's biotechnology is undergoing a structural transformation driven by Chinese pharmaceutical companies. They have moved beyond the era of generic drugs and are now challenging Western dominance in the field of innovative drugs.

A exclusive analysis by Bloomberg News shows that last year, the number of innovative drugs for cancer, weight loss, and other conditions entering the research phase in China surged to more than 1,250, far exceeding the EU and approaching the US (1,440).

The report said that Chinese pharmaceutical companies, once known for producing cheap generic drugs, are now producing drugs that meet higher standards and have gained recognition from regulatory authorities and Western pharmaceutical giants.

This analysis indicates a fundamental shift in China's focus on innovation in the pharmaceutical industry. As President Trump threatened to impose tariffs on medicines exported to the US, China's progress in biotechnology - whose scale is gradually becoming apparent - may make innovative drugs another area of superpower competition, just like artificial intelligence and electric vehicles.

Chen Wei, managing partner at A.T. Kearney Consulting in Shanghai, has provided consulting services on China strategies for healthcare companies since 2003. She said: "This scale of innovation is unprecedented for us. The products are locally produced and very attractive, and they are developed quickly."

The report pointed out that this transformation is happening at an unprecedented speed. When China began a comprehensive adjustment of its drug regulatory system in 2015, the number of innovative drugs in China was less than 6% of the global total, lagging behind Japan and the UK. Systematic reforms helped optimize the review process, enforce data quality standards, and increase transparency. The Chinese government's "Made in China 2025" plan also stimulated investment in the biotechnology sector. In total, these measures have sparked a wave of scientists and entrepreneurs involved in the development of innovative drugs.

Daniel Chancellors, vice president of Nostra Pharmaceuticals, said: "China is now almost on par with the US and has the same growth trends. It is not sensational to think that China will surpass the US in the number of innovative drugs in the coming years."

The report stated that, aside from numbers, the quality of China's biotech innovation is even more astonishing. While the industry debated whether Chinese pharmaceutical companies could produce new therapies that are both effective and relieve suffering, they have already received recognition in many aspects. Regulatory agencies such as the U.S. Food and Drug Administration and the European Medicines Agency have increasingly considered Chinese medicines reliable enough to justify allocating more review resources to expedite their approval processes, granting them favorable review treatment in the industry, such as priority review, breakthrough therapy designation, or fast track status.

Data show that Chinese pharmaceutical companies slightly lead EU producers in obtaining fast-track review rights for medicines in the United States in 2024. However, the absolute number of Chinese innovative drugs receiving such treatment still lags far behind those of American companies.

The report said that avoiding risks remains a factor hindering China's pharmaceutical innovation: so far, some leading pharmaceutical companies in the industry often focus on better improvements of existing therapies or updates to old drug formulations, rarely developing entirely new therapies because such attempts carry a high risk of failure. This field is still dominated by the US, Europe, and Japan.

However, the breakthrough achievements of Chinese companies are increasingly being snapped up by pharmaceutical giants at record prices. Last year, an anti-cancer drug developed by China's Concore Biotechnology was proven to be more effective than Merck's drug, sparking renewed interest in investing in China's pharmaceutical industry globally.

In May this year, Pfizer announced a prepayment of over $1.2 billion to reach an agreement with SanBio Pharmaceutical Company for an anti-cancer drug, setting a new record for the purchase of innovative drugs. DealForma's biopharmaceutical data company showed that the value and frequency of such transactions are increasing, indicating growing confidence that drugs produced in China are competitive internationally and can generate significant revenue.

Additionally, a key advantage driving the rise of Chinese biotechnology companies is that every step of their trials is advanced at lower costs and faster speeds. (Translated by Pan Xiaoyan)

On March 21, staff members of He Yuan Biotechnology (Tianjin) Co., Ltd. operated equipment in the cryopreservation and revival room at the production base. (Xinhua)

Original article: https://www.toutiao.com/article/7527140833548567040/

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