China has been relatively slow to explore the space of biopharmaceutical industry; however, with economic development and changing regulatory reforms, the country is fast becoming a top destination for biopharmaceuticals. Between 2012 and 2016, China’s biopharma market grew from $9.4 billion to $22.8 billion, and the market is expected to touch $48.8 billion in sales by 2022.1
Key growth drivers shaping the biopharmaceutical industry in China
- Rising healthcare expenditure
- Rise of the middle class (greater purchasing power)
- Enhanced reimbursement policies
- Robust growth of the general economy
- Government-backed biotechnology expansions
- Foreign biopharma companies consider China as one of the most promising outsourcing destination
Let us look at some key developments and trends in the Chinese biopharmaceutical industry.
Trend towards a Greater Market Share of Biologic Therapeutics
The Chinese pharmaceutical industry is observing a greater market share of biologic therapeutics, especially monoclonal antibodies (mAb) therapeutics. As per a report by BioPlan Associates, there are over 250 mAb therapeutics under clinical development in China, with CD20, HER2, EGFR, VEGF, and TNF-alpha being the main targets.1
Local biotech companies in China are now innovating not only for China but for the global market. As per a Mckinsey report, local biotech companies have approximately 800 innovative molecules in the pipeline, among which 70–80 are in phase III.2 Among these key players, many now conducting trials beyond China, either alone or via collaborations.
Exploring the Biosimilar Space
The biosimilar space represents a crucial opportunity to improve affordability and bring increased access to essential therapeutics – especially in cancer therapeutics. China is also viewed as a potential biosimilars powerhouse; however, compared to the United States (US) and European Union (EU), China still needs to gain traction.
China’s regulatory agency created national guidelines for developing and evaluating biosimilars in 2015, which broadly follows similar principles as the EMA and the FDA. Rituximab biosimilar, developed by Shanghai Henlius Biopharmaceutical (“Henlius”), is the first China-developed biosimilar to reach the market.
From Tradition to Innovation - Current Wave of Biopharma Has Attracted Many Chinese Companies
Though most Chinese companies and medical supplies manufacturers currently work on traditional pharmaceuticals, the coming years may witness the launch of novel biological therapeutics as well as many biosimilars. The current wave of biopharma has attracted many Chinese companies to invest more in innovative drug development. Many biotech firms are building on recent progress in genomics, focusing on rare genetic diseases.
Biotech company | Key focus area |
CStone Pharma | PD-1 inhibitors |
CARsgen Therapeutics | CAR-T therapy |
JW Therapeutics | CAR-T therapy |
BeiGene | PD-1 inhibitors |
Legend Biotech | Anti B-cell maturation antigen (BCMA) |
GenScript Biotech | CAR-T therapy |
Zai Lab | CAR-T therapy |
(PD-1: Programmed cell death protein – 1 inhibitors; CAR-T: Chimeric antigen receptor ...
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