China accounts for one-fifth of global drugs in development

Core Insights - China-based companies are responsible for 20% of drugs in development globally, highlighting the country's significant role in the pharmaceutical industry [1][6] - Regulatory and policy reforms in China have rapidly advanced its drug development landscape, with the country accounting for nearly double the percentage of drugs being developed compared to the 5EU, which is 11% [2][3] - The US remains the leader in drug development, holding a 40% share [2] Regulatory Initiatives - The Chinese government has implemented various regulatory initiatives over the last decade to enhance competitiveness, including the 2015 policy aimed at accelerating growth in the pharmaceutical and medtech sectors [3][4] - Modernization of clinical trials is a key focus, contributing to China's goal of becoming a dominant region for drug pipelines [3] Licensing and Transactions - There has been a significant increase in licensing deals between Chinese biotechs and Western pharmaceutical companies, with a notable $5.2 billion deal between AstraZeneca and CSPC Pharmaceuticals [4][5] - The NewCo deal structure has gained popularity, allowing rights to be assigned to a new company where companies and investors hold equity [5] - Licensing deals between US and Chinese biopharma companies reached record highs last year, showing a 280% increase from 2020 [5] Market Trends - Transactions across big pharma rose by 66%, increasing from $16.6 billion in 2023 to $41.5 billion in 2024, indicating China's status as a key location for discovering pipeline candidates [6] - China is transitioning from a "me-too" market to a global innovator, reshaping the global drug development landscape [6]