From September 27th to 28th, 2023, Frost & Sullivan's (Frost & Sullivan, abbreviated as Frost & Sullivan) second New Investment Expo and the 17th Frost & Sullivan Global Growth, Innovation and Leadership Summit (abbreviated as 'Frost & Sullivan New Investment Conference') Life Sciences New Investment Summit Forum was grandly held at the Shangri-La Hotel in Pudong, Shanghai. This forum was co-hosted by Frost & Sullivan and the China Biomedical Industry Chain Innovation and Transformation Alliance (CBIITA), with the theme of 'New Directions for the Future: Forge Ahead'. It gathered industry leaders, life science enterprises, investment institutions, and professional service providers, focusing on new investment opportunities in life sciences financing and capitalization, and jointly discussing the capital and industrial forces that enable enterprises to navigate through cycles.
At this forum, Mr. Greg Caressi, Partner at Frost & Sullivan, Global Head of Client Engagement and Senior Vice President, delivered an opening speech and shared a keynote presentation titled 'The Impact of the Development of Biotechnology on China'. The presentation mainly focused on market analysis of drugs, as well as the future development of three sub-sectors: antibody-drug conjugates (ADCs), cell and gene therapy (CGT), and artificial intelligence (AI) drugs.
Greg Caressi, Partner at Frost & Sullivan, Global Head of Client Relationships and Senior Vice President
01Market analysis of drugs
Greg & Coatesy pointed out that biotech companies in the Asia-Pacific region have demonstrated strong innovation capabilities in drug research and development. They not only excel in attracting talent but also lead the world in innovative technologies and business models. For example, some companies are using artificial intelligence for drug research and development, while others are promoting industry development by establishing their own technology platforms or licensing to large pharmaceutical companies. In the Asia-Pacific region, more than half of the market share belongs to innovative drugs, reaching 50.6%, surpassing generic drugs.
A large number of biotech companies are making investments in oncology and rare disease drugs. According to Greg Carey, Fosun Pharma increased its innovative drug portfolio by 127% in 2022, and venture capital is beginning to pay more attention to next-generation therapies, which may increase the proportion of CGT (complementary and alternative medicine). China currently leads in advanced treatment product lines, but due to the huge investment required for innovative therapies and strict regulatory reviews, this may also inhibit the market share growth of innovative drugs in developing countries.
02The future development of three sub-sectors in ADC, CGT, and AI drug research and development
Greg & Co. Kelly stated that the global antibody drug market will experience rapid development, with the revenue of the ADC market growing at a high rate. The CGT market also has considerable potential that has largely not been exploited. Cell and gene therapy is an important example of precision medicine, targeting specific diseases and providing more precise treatment plans. However, the production costs of these therapies are high, and they face market access issues. With the development of technology, it is expected that more innovative companies will promote the development of cell and gene therapy by reducing production costs, improving production efficiency, and expanding market channels.
Greg & Cooley-Raycey pointed out that artificial intelligence is reshaping the value chain of drug research and development. From the R&D cycle to product launch, the application of AI is improving efficiency and reducing costs. Especially in the early development stages, AI can help identify potential drug targets and reduce failure rates through automated processes. At the same time, AI is also helping pharmaceutical companies predict the effectiveness and side effects of drugs more accurately, thereby optimizing products. AI-driven drug research and development is becoming an important solution in the pharmaceutical value chain, with oncology, infectious diseases, and neurodegenerative diseases being the areas of most focus. In the short term, the industry may see some digital models for clinical trials using AI to simplify trial protocols and execution.
Greg & Kelly believe that in the face of new trends in drug research and development, global biotechnology companies need to seize opportunities and actively transform. Artificial intelligence and precision medicine have brought tremendous potential to the pharmaceutical industry but also pose challenges. For pharmaceutical companies, understanding and applying these new technologies are key. At the same time, governments and investors also need to provide more support to help these emerging companies grow and develop. With the continuous development of technology, we can foresee that future drug research and development will rely more on new technologies such as artificial intelligence and precision medicine. Meanwhile, emerging markets like the Asia-Pacific region will provide more innovation opportunities for global biotechnology companies. We look forward to seeing more innovative companies and products emerge, making greater contributions to the global health cause.
Finally, Greg & Kerrysey wish the conference a successful convening, and that participating experts can fully exchange industry experiences and conduct business exchanges.
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