How will Chinese innovation change the pattern of the global pharmaceutical industry?

Endpoints recently published a trend forecast article written by a senior partner of McKinsey, which mentioned that China's pharmaceutical industry may reshape the global industrial landscape in eight aspects
.

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Endpoints recently published a trend forecast article written by a senior partner of McKinsey, which mentioned that China's pharmaceutical industry may reshape the global industrial landscape in eight aspects

Background: an innovative ecology with everything ready

Background: an innovative ecology with everything ready

With the development of the biopharmaceutical industry in China, it is becoming easier to obtain the nutrients needed for innovation: capital, CRO/CDMO services and talents
.

Obviously, the burgeoning innovative medicine industry in China will no longer be just a Chinese story.

Data show that as of May 2021, the cumulative market value of Chinese domestic Biotech listed on the Hong Kong Stock Exchange, Science and Technology Innovation Board or Nasdaq has jumped from US$1 billion in 2016 to US$180 billion, an increase of 180 times
.

According to Qiming Venture Capital's 2021Q1 data, more and more Chinese affiliated funds are deploying capital outside China to support the emergence of innovative start-ups in the United States, such as Eli Lilly Asia, Huiqiao Capital, and Quanchuang Capital

As of May 2021, the market value of Chinese CRO/CDMO companies listed on the Hong Kong Stock Exchange, Science and Technology Innovation Board or Nasdaq has jumped from less than US$1 billion in 2016 to US$176 billion
.

China has become a market segment for leading service providers, especially with a global customer base in the chemical field

For example, in Humanigen, California, U.
S.
Dingkang Biotech recently commercialized its drug candidate lenzilumab drug substance (Drug Substance) and finished product (Drug Product)
.

At the same time, some local Chinese companies are establishing global manufacturing networks

From the perspective of talents, China's position in the global talent market is rising, and some companies are rapidly transforming from "based on China" to "based on the world
.

" More and more Chinese innovative drug companies hire key CEOs and C-level high-end talents from MNC, and assume group global positions/roles in their country of identity

In addition, many CEOs of Chinese innovative drug companies were global executives of multinational companies (for example, Genting Xinyao’s CEO spent most of his career at Eli Lilly, and CStone’s chairman and CEO came from Sanofi, etc.
)
.

On the other hand, the role and influence of key elements of Chinese enterprises in the industrial value chain are becoming more and more obvious
.

Whether in the early pre-clinical discovery stage, or in clinical development and commercialization cooperation

Not to mention commercial transactions.
In the development of innovative drug projects, from license in to license out, cross-border cooperation has become more frequent, the scale of transactions has become larger and larger, and the forms of cooperation have become more and more diverse..

Top 10 license out transactions of China's innovative drugs

(According to the down payment, billion U.
S.
dollars)

In the eyes of foreign media, China is already an important part of the global biopharmaceutical industry, rather than an independent ecosystem coexisting and interacting with multinational pharmaceutical companies
.

The driving force behind it is not only driven by the regulatory reforms carried out in the past five years (including China's accession to ICH in 2017), but also the potential of China's pharmaceutical industry to influence patients around the world
.

Outlook: Eight aspects of reshaping changes

Outlook: Eight aspects of reshaping changes

The above background also indicates that the rise of China's biopharmaceutical industry will produce an obvious and powerful trend.
In the next 10 years, Chinese innovation may reshape the global pharmaceutical industry from the following eight aspects
.

The impact of the scale and speed of innovation on the industrial value chain

The impact of the scale and speed of innovation on the industrial value chain

Can China use its core strengths, scale and speed of innovation like in many other industries (e.
g.
solar panels, high-speed rail)? Will this help reduce the cost of discovery for all players around the world? Can innovative drugs be released from the laboratory faster Go to the clinic and then to the patient, thereby saving costs and lives? Will China's large-scale manufacturing and mass production potential completely change the traditional pricing model of monoclonal antibody drugs?

Become an alternative source of funding for Biotech in Europe and America

Become an alternative source of funding for Biotech in Europe and America

Will China become a reliable alternative funding source for European and American biotech companies through VC/PE and stock exchanges (Hong Kong Stock Exchange and Science and Technology Innovation Board).
These companies can benefit from additional funds to unlock their strong research and discovery potential?

More agile artificial intelligence and big data applications

More agile artificial intelligence and big data applications

Can China’s leading position in the field of artificial intelligence be transformed into a source of research and development in the field of biopharmaceuticals? And to promote new healthcare and commercialization models? Given that China has a huge amount of patient big data, as well as the emergence of big data mining companies , Is it possible that the development of artificial intelligence and big data in the pharmaceutical field is faster than that of the US/EU?

Increasingly mature R&D capabilities promote the establishment of "new standards"

Increasingly mature R&D capabilities promote the establishment of "new standards"

Will China’s discovery capabilities quickly produce new mechanisms of drugs? Is it possible for China to produce innovative molecules with broader indications than European and American pharmaceutical companies? Once China’s biopharmaceutical innovation enters the global market on a large scale, it will develop "new standards" for productivity What will it be?

Globalization of the concept of "affordable innovation"

Globalization of the concept of "affordable innovation"

In recent years, Chinese Biotech has increasingly emphasized the concept of "affordable innovation" (that is, fast follow or me better drugs to shake FIC's pricing).
Will this business model accelerate services in Southeast Asia or Africa to a large extent? The development of inadequate innovation areas? And whether this model will "involve" the R&D among US pharmaceutical companies?

Birth of a new generation of global biopharmaceutical giants

Birth of a new generation of global biopharmaceutical giants

Can China's ecosystem give birth to a new generation of global biopharmaceutical giants? If it follows the path of Japanese pharmaceutical companies, is it possible that Chinese companies will become global pharmaceutical giants faster?

Game and balance in innovation competition

Game and balance in innovation competition

Considering the increasingly fierce competition for innovation in China, how to make breakthroughs and innovations to a higher degree for some familiar innovation models and disease fields? How will global innovation play a game and balance in this competition?

The new "survival way" of multinational pharmaceutical companies in China

The new "survival way" of multinational pharmaceutical companies in China

As a multinational pharmaceutical company, what new key elements are needed to succeed in the fiercely competitive China's way of survival in the local biopharmaceutical innovation market? Are China's current innovation channels, investment levels and "return rates" consistent with market growth forecasts Proportionate to the speed of evolution?

Reference

Reference

Endpoints.
8 ways China could help transform the global biopharma industry

Endpoints.
8 ways China could help transform the global biopharma industry