Core Viewpoint - The article discusses the challenges and opportunities within China's innovative pharmaceutical industry, highlighting the significant foreign licensing deals while also addressing the undervaluation and pricing issues faced by domestic companies [2][3][4]. Group 1: Achievements in the Innovative Pharmaceutical Industry - In 2023, China's innovative pharmaceutical sector has seen remarkable achievements, with foreign licensing deals exceeding $1 billion, and the total licensing amount in the first half of the year nearing last year's total [2]. - A notable transaction involved BioNTech acquiring rights to the cancer drug BNT327 from Chinese company Pumice, with a total deal value of $11.1 billion, showcasing the high value of Chinese-developed drugs [3][4]. Group 2: Concerns Over Valuation and Pricing - Despite the successes, there are concerns regarding whether the true value of these drugs is being realized, as many Chinese companies are perceived to be "selling low" their innovations to international giants [3][4]. - The pricing disparity between domestic and international markets is significant, with some innovative drugs priced 10 to 30 times higher in the U.S. compared to China, indicating a systemic undervaluation of Chinese innovations [9][10]. Group 3: Challenges in Market Access - The process for new drugs to enter hospitals in China is lengthy and complex, often taking up to 10 years to achieve significant sales, which hampers the commercial returns for innovative drug companies [12][13]. - Regulatory barriers and a traditional focus on inpatient care over outpatient services limit the market penetration of innovative drugs, further constraining their profitability [13]. Group 4: Potential Solutions and Policy Support - Recent policy measures, including the establishment of a commercial health insurance directory for innovative drugs, aim to enhance the domestic market and provide new payment channels for high-value drugs [16][17]. - The government is also focusing on improving the global competitiveness of Chinese innovative drugs by facilitating their entry into international markets and supporting investment in these sectors [17][18].

Core Insights - The Chinese innovative pharmaceutical industry has achieved significant milestones in 2023, with over $1 billion in outbound licensing deals, nearing last year's total in just the first half of the year [1] - However, concerns arise regarding whether the true value of these innovations is being realized and who holds the pricing power [1][3] - Many Chinese companies are reportedly undervaluing their innovations, leading to a situation where they sell their drug pipelines at low prices before they reach the market [2][3] Group 1: Licensing Deals and Financial Returns - BioNTech's acquisition of BNT327 from Chinese company Pumice highlights the disparity in returns, with BioNTech set to receive over $96 billion in future payments after a $15 billion upfront payment, while Pumice only received $0.55 billion initially [2] - Similar situations are observed with other companies, such as Hengrui Medicine, which licensed SHR-1905 to Aiolos Bio, only for Aiolos to be acquired by GSK shortly after, indicating a trend of undervaluation in the Chinese market [2][3] Group 2: Pricing Disparities - There is a significant price gap between innovative drugs in China and those in the U.S., with examples showing that Chinese prices can be 14 to 33 times lower than U.S. prices for similar drugs [5][6] - The Chinese market is described as a "price sink," with innovative drugs priced approximately 39% lower than the median international reference prices, resulting in a mere 3% share of the global pharmaceutical market [5][6] Group 3: Market Access Challenges - The process for new drugs to enter hospitals in China is lengthy and complex, often taking up to 10 years to achieve significant sales, which contrasts sharply with the U.S. market where new drugs can generate substantial revenue within months [7][8] - High entry barriers and low coverage rates for innovative drugs in hospitals hinder their market penetration and profitability, further discouraging innovation [8] Group 4: Policy Responses and Future Outlook - Recent policy measures, including the establishment of a "commercial health insurance innovative drug directory," aim to enhance the market for innovative drugs and provide new payment channels [10][11] - The government is also focusing on improving the global competitiveness of Chinese innovative drugs by facilitating access to international markets and supporting commercial insurance investments [11]

国内创新药生态还不成熟、资本寒冬尚未度过，"创新药定价"仍是关键因素，它关乎医药创新是不是一 件可持续的投资行为。 从研发融资、支付定价到临床应用，创新药企近半月接连迎来政策和市场面的利好消息。 7月1日，国家医保局和国家卫健委联合发布《支持创新药高质量发展的若干措施》（下称"若干措 施"），释放出更友好的创新药定价信号，鼓励商业健康保险扩大创新药投资规模，并首次明确了商保 创新药目录内药品在挂网、进院等销售环节可获得一定优待。同日，武汉禾元生物科技股份有限公司成 为科创板第五套上市标准重启后首家过会企业，意味着未盈利生物医药企业直接融资渠道再度畅通。 而此前一日，业界期待已久的"创新药物研发国家科技重大专项"的申报窗口开放，这是时隔数年中央层 面再度发布重大新药研发的专项部署，已公布中央财政配套资金规模达到17.5亿元。 6月中下旬，国家药监局和国家医保局还先后从缩短创新药临床试验审评审批时间和剔除"国考"费用控 制指标中创新药收入两个维度，完善创新药支持举措。 今年上半年，医药行业经过近四年的调整，在资本市场上出现明显的回暖态势。部分受访业界人士认 为，这一回暖势头主要得益于早期实现创新药转型的本土药企陆 ...