China's pharmaceutical and biotechnology industry is experiencing unprecedented growth, marked by record-breaking technology exports and significant FDA approvals. This surge underscores China's increasing competitiveness and innovation in the global biopharmaceutical market.
Exponential Growth in Technology Exports
According to MyBioCapital, technology exports from Chinese pharmaceutical and bio companies reached 80 cases last year, nearly doubling from 41 cases in 2021. This remarkable increase highlights the growing demand for Chinese biotech innovations and technologies worldwide.
Major Investments and Collaborations
Global pharmaceutical giants are increasingly investing in Chinese biotech. In 2022, Merck (MSD) invested $9.475 billion to license ADC technology from Kelun. Johnson & Johnson (J&J) developed "Carvykti," a CAR-T therapy for multiple myeloma, based on technology from China's Legend Biotech. Carvykti received FDA approval in 2022 and is considered a leading CAR-T therapy.
FDA Approvals for Chinese-Developed Drugs
Junshi Biosciences, in collaboration with Coherus BioSciences, received FDA approval in October 2022 for "Toripalimab," an immuno-oncology drug targeting nasopharyngeal cancer. Bio-Thera Solutions also secured FDA approval in December for "Avitinib," a targeted anti-cancer drug. These approvals signify the increasing recognition of Chinese pharmaceutical innovation on the global stage.
Recent Deals and Market Trends
Last month, MSD licensed a bispecific antibody from Lanova for $2.7 billion, covering clinical trials, approvals, and sales milestones. Local Chinese media reports indicate that the top 15 technology export deals by Chinese pharmaceutical companies last year exceeded $1.02 billion each.
This year, contracts worth between $1 billion and $3 billion have been signed with major pharmaceutical companies such as Merck (MSD), GlaxoSmithKline (GSK), and Novartis. GlobalData reports that as of April this year, Chinese bio ventures accounted for five of the top ten global companies developing ADC new drug candidates. China is also leading in CAR-T clinical trials, accounting for 51% of global CAR-T clinical trials, with over 1,000 ongoing or completed.
Comparative Analysis with South Korea
While South Korean pharmaceutical and bio companies saw an increase in technology exports until 2021, growth has since stalled. Exports were valued at ₩8.43 trillion in 2019, ₩10.98 trillion in 2020, ₩14.79 trillion in 2021, ₩6.35 trillion in 2022, and ₩7.96 trillion in 2023. This year's figures are projected to be similar to last year, with approximately $4.993 billion (₩6.49 trillion) recorded as of November.
Industry Perspectives
According to a representative from a South Korean bio venture, China's R&D level in areas like ADC and CGT is considered to have surpassed that of South Korea. Lee Seung-gyu, vice chairman of the Korea Bio Association, noted that China is making substantial government-led investments and implementing favorable regulations to foster industrial growth. He also highlighted the return of experienced professionals who studied abroad, contributing to the talent pool in the Chinese bio industry. Despite some concerns about the reliability of Chinese clinical trial results, the Chinese market is expected to grow further, with more drugs likely to receive FDA approval in the future.
