Pfizer(US:PFE) Xin Lang Cai Jing·2025-08-06 08:27Core Viewpoint - The rise of China's biotechnology industry is causing concern among U.S. pharmaceutical companies and politicians, with Pfizer's CEO emphasizing the need for the U.S. to focus on surpassing China rather than preventing technology transfer [1][3]. Group 1: Industry Trends - By the first half of 2025, one-third of global pharmaceutical licensing deals will involve Chinese drugs, up from 21% in 2023 and 2024, indicating a significant increase in China's role in the global pharmaceutical market [3]. - Pfizer's recent licensing deal with China's 3SBio for an oncology drug, valued at $60.5 billion, highlights the growing importance of Chinese biotech firms in the global landscape [3]. - Over the past decade, China's biotechnology sector has rapidly developed due to government support, flexible regulations, and a skilled workforce, leading to increased investment and competition with the U.S. [3][5]. Group 2: Competitive Landscape - China is now on par with the U.S. in clinical trial activities, and Chinese researchers are leading in CRISPR gene editing and structural biology publications [4][5]. - By 2025, the number of biotechnology patent applications submitted by Chinese researchers is expected to surpass that of their U.S. counterparts, attracting more private investment into Chinese biotech companies [5]. Group 3: Government and Policy Implications - The U.S. biotechnology sector has faced funding challenges, with calls for significant government investment to avoid falling behind China [5]. - Recent U.S. tax and spending legislation has provided some support for domestic pharmaceutical companies, allowing immediate deductions for certain R&D expenses [5]. - However, the Trump administration's proposed tariffs on imported drugs could create further uncertainty for the U.S. pharmaceutical industry [5][6].