France's Le Monde: From Generic Drugs to Biotechnology: China's Pharmaceutical Industry is Rising and Unstoppable
An article published by France's Le Monde on Wednesday stated that within less than a decade, China has become an important center for pharmaceutical innovation, attracting many top Western pharmaceutical companies. This success is particularly due to the reform of China's local scientific validation procedures.
China: The World's Leading Drug R&D Center
Le Monde wrote that for a long time, China was only producing the active ingredients of drugs and generic drugs, but today, China is rapidly rising as one of the world's leading centers for drug R&D.
Data from the World Health Organization's International Clinical Trial Platform shows that in 2024, China conducted 7,100 clinical trials, while the United States had only 6,000 clinical trials during the same period. In addition, out of the 2,162 cancer clinical trials launched globally, 39% were conducted in China. Oncology, immunology, rare diseases... Within less than ten years, China has become one of the countries with the most innovative therapy developments, just like the United States and Europe.
For example, Guangdong Kangfang Biotech, established in 2012, has now become one of the most well-known biotechnology companies in China. The innovative antibody drug Ivonescimab developed by Kangfang Biotech showed better efficacy than Merck's flagship drug Keytruda in some Phase III clinical trials in China.
Large Western pharmaceutical companies are also rushing to invest in China to get their future drugs approved in China, some of which are still in the preclinical stage, i.e., animal testing. For example, in December 2024, Merck invested 2 billion dollars to acquire a weight-loss drug developed by Jiangsu Haosen Pharmaceutical.
Biopharmaceuticals: A Strategic Industry
The article in Le Monde pointed out that as early as the mid-2010s, the Chinese government had already designated biopharmaceuticals as a strategic industry, using subsidies, public loans, and national investment funds to support the research, clinical trials, and industrialization of biopharmaceuticals. As a result, each major city has formed its own biotechnology enterprise cluster with multi-level support mechanisms.
In the biotechnology enterprise cluster in Zhongguancun, Beijing, each target research project is eligible for funding of up to several million euros. Through agreements, companies can use heavy equipment from the Academy or purchase transgenic experimental animals at negotiated prices. Afterward, the municipal government is responsible for finding suitable public university-affiliated hospitals for clinical trials. Enterprises recognized as "high-tech" can enjoy a preferential corporate income tax rate of 15% (typically 25%), and their employees can also receive housing subsidies.
Additionally, the Chinese government has fundamentally reformed the regulatory framework, accelerating the approval process for product listings and placing more emphasis on clinical trials conducted domestically rather than abroad. Moreover, China's large population base and the dense distribution of public hospitals have accelerated patient recruitment: making clinical trials faster and cheaper.
It is also worth noting that the government plays a crucial role in drug distribution: including a certain drug in the national medical insurance directory ensures that pharmaceutical companies have a huge market...
Western pharmaceutical companies have not hesitated to transfer the production of innovative drugs to China to reduce costs and gain access to this coveted national medical insurance directory. On December 08, Eli Lilly's type 2 diabetes treatment drug Mounjaro was approved for inclusion in the insurance. Two months earlier, the company announced an investment of 200 million dollars in its factory in Suzhou to produce the drug, "supplying the Chinese and European markets."
Quick Use of Artificial Intelligence
Le Monde also pointed out that the overall upgrading of China's pharmaceutical industry has also benefited from the rapid use of artificial intelligence (AI). For example, BioMap, founded by Baidu's founder Li Yanhong in 2020, is developing an AI platform that can analyze large volumes of patient biological data, predict the efficacy and toxicity of drug molecules, thus significantly shortening the time from laboratory to clinical trials, using its vast inventory of NVIDIA chips.
However, Qin Shukui, leader of the Chinese Society of Clinical Oncology, raised doubts about the prevailing optimistic views. He said, "The advantage of Chinese pharmaceutical companies lies in their ability to quickly adapt and optimize, but there is still a gap to be bridged in original innovation." This scientist emphasized that the importance of international cooperation and basic research should not be ignored.
Original: toutiao.com/article/1851901784044608/
Statement: The article represents the views of the author.