China Biopharmaceuticals Annual Report Conference
Co-hosted by the Chinese Association of Medical Biotechnology, the journal Chinese Medical Biotechnology, and the People's Government of Tonglu CountyThe 'Fuchunshan China Biopharmaceutical Industry Annual Report Meeting and Top Ten Advances in China Biopharmaceutical Technology (2023)' was held from January 12th to 14th, 2024, in Tonglu, Hangzhou.
Affected by various factors such as global social politics and the COVID-19 pandemic, global economic development has continued to fluctuate. The fields of biopharmaceutical research and investment have been significantly impacted, causing certain negative effects on the development of biopharmaceutical research, especially in the areas of innovative drugs and new therapies. To objectively analyze and understand the current situation at home and abroad and actively respond, this event has specially designedThe special forum 'Ice-breaking Journey - Seizing Opportunities in Biomedical Development and Investment' has invited relevant academicians and experts, heads of well-known enterprises, representatives from investment institutions, and representatives from renowned consulting agencies to attend. The forum aims to jointly discuss how to seize opportunities in an ever-changing environment, formulate practical strategies, and achieve healthy development in the field of pharmaceutical biotechnology.
Frost & Sullivanfrost &Dr. Wang Xin, Global Partner and Chairman of Frost & Sullivan's Greater China Region, was invited to attend a special forum. He reported and exchanged ideas with leaders, experts, entrepreneurs, and researchers on 'how to seize opportunities in biopharmaceutical development and investment'.
Dr. Wang Xin (first from left), Professor Wang Yu (second from left), President of the China Foundation for the Prevention and Control of Hepatitis and former Director of the Chinese Center for Disease Control and Prevention, Academician Chen Kaixian (second from right), an expert in drug research at the Shanghai Life Sciences Institute of the Chinese Academy of Sciences, and Professor Cai Jiangnan (first from right), Executive Chairman of Chuangqi Health Research Institute
Dr. Wang Xin's main viewpoints are as follows:
The development trend of the global biopharmaceutical industry is shifting towards personalized, precision medicine, and preventive healthcare. With the rapid development of technologies such as gene sequencing and cellular immunotherapy, the biopharmaceutical industry is expected to make significant breakthroughs in areas such as cancer and genetic diseases. At the same time, with the application of artificial intelligence and big data technology, the biopharmaceutical industry will also enter an era of greater intelligence and efficiency.
In China, the biopharmaceutical industry is also developing rapidly. The Chinese government has increased its support for the biopharmaceutical industry, encouraged innovation and R&D investment, and accelerated the development of the industry. At the same time, China's population aging and increasing health awareness have also provided broad market space for the biopharmaceutical industry. In the next few years, China's biopharmaceutical industry will continue to maintain a high growth rate and is expected to become one of the important centers in the global biopharmaceutical industry. In terms of market size, the current market size of China's biopharmaceutical industry is aboutRMB 1.6 trillion, expected to exceed RMB 2.8 trillion by 2030. The main growth in the market comes from the rapid development of generic drugs, which will maintain a 10% rapid growth rate over the next five years.
Overall, the development trends of the global and Chinese biopharmaceutical industries in the coming years are very clear. Technological innovation and market demand growth will jointly drive the development of the industry. At the same time, further strengthening is also needed in aspects such as government policies, capital investment, and talent cultivation to promote the sustainable development of the industry.
Dr. Wang Xin pointed out, comparisonFrom 2019 to 2021, the Chinese biopharmaceutical capital market was booming. However, since the second half of 2022, the activity of the Chinese biopharmaceutical market has indeed declined. From the perspective of capital investment, compared withIn 2021 and the first half of 2022, investment generally exceeded 8 billion US dollars. In the first half of 2023, investment in the biopharmaceutical sector in the Chinese market has fallen back below 6 billion US dollars.
Source: Analysis by Frost & Sullivan
However, from an industrial perspective, China's biomedicine industry is still moving forward on its development path. In 2023, a large number of innovative biopharmaceutical companies that were previously listed as unprofitable entities have now launched commercial products. Companies such as BeiGene, CanSino Biologics, CStone Pharma, and Fosun Pharma have all seen their commercial product revenues grow by more than 50%.
Not only that, but a large number of local companies have also started toThe pace of 'going global' has also seen enterprises no longer solely rely on capital investment from the pure capital market for R&D. According to statistics, as ofAt the end of October, there were a total of 28 domestic innovative drug projects going global through license-out arrangements, with a total upfront payment exceeding $2.1 billion and a total transaction amount reaching $227 billion. The product forms included small molecules, antibodies, ADCs, CAR-Ts, etc., among which ADC was the most popular track and area of deployment. For example, Fosun Pharma, Hengrui Medicine, Rongchang Biologics, and Yilian Biotech have successively disclosed their global equity cooperation arrangements.
Dr. Wang Xin said, looking atThe Chinese biopharmaceutical market after 2015 is essentially one of continuous innovation, with more new and effective drugs beginning to enter clinical trials. In the past few years, the newly revised 'Drug Registration Management Measures' and 'Drug Production Supervision and Administration Measures' implemented by the state have laid a solid foundation for the development of China's biopharmaceutical market.
On one hand, the state has made its policies on new drug regulation more stringent and standardized to ensure the safety and effectiveness of drugs. On the other hand, it has also increased supervision over generic drugs, raised the quality standards for generic drugs, and created a better market environment for the research, development, and marketing of innovative drugs.
Secondly, the government has simplified the approval and marketing process for new drugs, accelerating their launch speed. For instance, the country has implemented a priority review and approval policy, giving priority to eligible new drugs in terms of approval, shortening the approval cycle, and accelerating the launch process of new drugs. In addition, the government has established a special approval channel for innovative drugs, providing more convenient services for the research, development, and marketing of innovative drugs.
In addition, the Chinese government has introduced support policies for biopharmaceutical innovation enterprises, such as tax exemptions and financial support, to encourage companies to increase investment in innovative drug research and development. At the same time, the government also encourages enterprises to collaborate with universities and research institutes for industry-university-research cooperation, promoting the R&D process of innovative drugs.
"Although the performance of biomedicine in the capital market has slightly declined in the past year, considering the national development direction, the favorable policies continue to support the Chinese biomedicine market in its development and exploration into deeper areas," said Dr. Wang Xin.
Dr. Wang Xin further emphasized the importance of patents, pointing out that like most technology industries in China, early patent layouts of Chinese biopharmaceutical companies were not perfect. In the face of global patent challenges, they also lack suitable talent and mechanisms to ensure compliance. For example, Zanubrutinib, an innovative drug independently developed by BeiGene, a leading domestic innovative drug company, encountered setbacks in the US with AbbVieThe incident of AbbVie's subsidiary suing for patent infringement is essentially a global market challenge to Chinese pharmaceutical companies using patent tactics for business purposes.
Going global is one of the main focus areas for biopharmaceutical companies at present, and it is also an important moment for Chinese domestic biopharmaceutical companies to prove their R&D capabilities in the global market. This poses a significant challenge to local enterprises. There are differences in the originality and protection regulations of pharmaceutical patents among different countries. Chinese companies not only need to strengthen their internal awareness of intellectual property protection but also establish and maintain their intellectual property rights internationally. At the same time, they should better understand international legal situations to adapt to complex litigation procedures in countries such as the United States.
Finally, Dr. Wang Xin concluded,"In the year 2023, due to the pressure brought about by the external macro environment, China's biopharmaceutical industry faces numerous challenges and uncertainties. 'Seeking change within the midst of stability, and preparing for a comeback after a period of stagnation,' biopharmaceutical companies are finding new support and balance amidst periodic fluctuations. With the industry's development stabilizing, corporate strategies maturing, and resource allocation becoming more perfect, I believe that more industry opportunities and market opportunities will eventually emerge in the coming year."
Dr. Wang Xin (left) and Academician Chen Kaixian (right), an expert in drug research and a member of the Chinese Academy of Sciences, from the Shanghai Life Sciences Institute of the Chinese Academy of Sciences
