China's growing share of drug research

Five charts to start your day

Good morning – here are your five chart for the day.

CHART 1 • China's surge in global drug innovation

The numbers are staggering. China's novel drugs entering development ballooned to over 1,250 last year, far surpassing the European Union and nearly catching up to the US's count of about 1,440. This represents a tectonic shift from China's copycat reputation to genuine innovation powerhouse.

What's driving this surge? Regulatory reform launched in 2015 supercharged China's biotech ecosystem. 30% of licensing deals from big pharma companies now involve a Chinese biotech, whilst 37% of big pharmaceutical companies' licensed molecules will come from China this year.

The implications are profound. More than 50% of the antibody-drug conjugate (ADC), bispecific antibody, and chimeric antigen receptor T cell (CAR-T) clinical pipeline is China-originated or China-partnered. Western pharma giants are racing to secure deals before prices rise further.

China's total biopharma R&D expenditure reached $15 billion in 2023, marking a sharp increase from just $35 million in 2015. With cheaper labour costs and streamlined regulations, China is becoming the world's drug discovery hub. The question isn't whether China will challenge Western pharma dominance – it's how quickly.

Source: Bloomberg

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