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China, the new epicenter of global pharmaceutical innovation

In recent years, China has risen to become a leader in global pharmaceutical innovation, driven by a dynamic and flourishing biotech ecosystem. In light of this, our long-standing presence in China, which spans more than 45 years, has paved the way for new development and innovation opportunities in this growing market.

A favorable innovation environment for the health care sector

Long confined to the role of follower and producer of generic medicines, China has undergone remarkable transformation in the space of just a few years. This has been driven by a combination of several key factors:

  • A growing health care economy as China emerges as one of the world’s largest economic powers.
  • Recent reforms which ease regulations and accelerate the time-to-market for treatments.
  • A booming biotech ecosystem, sustained by a massive shift in international pharmaceutical investment into the Chinese market since the Covid-19 pandemic.
  • A dominant position in select cutting-edge technologies, such as antibody conjugates.
  • Greater commitment to training the scientists of tomorrow.

China’s dynamic pharmaceutical innovation ecosystem

2x

China’s pharmaceutical innovation market is expected to double between 2023 and 2028 (source: McKinsey).

+25 points

China is now the second-largest developer of drugs worldwide, trailing only the United States.1 The country’s global share of the drug development pipeline rose from 3% in 2013 to 28% in 2023.

 

125x

The market value of Chinese pharmaceutical innovation companies listed on the Nasdaq, the Hong Kong Stock Exchange, and the Shanghai STAR Market rose from $3 billion in 2016 to over $380 billion in July 2021.2

Oncology, the driving force behind China’s pharmaceutical innovation

There are nearly 5 million new cases of cancer each year in China, accounting for about a quarter of all diagnoses worldwide3. As a result, oncology programs comprise 62% of the country’s research and development pipeline4.

“Building on our oncology franchise in China will be crucial in the years ahead. Successful growth in this area holds the key to securing our Group’s position in China’s rapidly-evolving pharmaceutical industry. I firmly believe that the unwavering dedication of our teams and their daily commitment will play a vital role in making our innovative treatments available to patients in China and leveraging the transformation of China’s market to create a valuable strategic opportunity for Servier.”

Bradley Lloyd, Regional Managing Director Asia Pacific, Servier

Creating value in China’s pharmaceutical ecosystem: A strategic imperative for health care companies

For global pharmaceutical companies such as Servier, investing, innovating, and manufacturing within China’s pharmaceutical innovation ecosystem is now a strategic imperative. These stakeholders have a critical role to play in bringing the innovative therapeutic solutions developed by Chinese biotech companies to a global audience, so that all patients worldwide can benefit.

In 2024, nearly one-third of new medicines licensed by international pharmaceutical companies came from Chinese companies5.

“Today, China is a global force in pharmaceutical innovation. Our competitors are already very active there, whether it be in terms of sourcing or partnerships in particular in recent years. We must also seize this opportunity and view the country as a driver of innovation on a par with the US and Europe.”

Cyrille Le Breton, Head of Competitive Intelligence, Servier

Takeaways

  • China is fast becoming a key player in the global pharmaceutical industry, driven by sustained economic growth and the rapid rise of its biotech sector.
  • Global giants are now turning their attention to China’s pharmaceutical market, where they hope to expand their market presence through closer collaboration with local players driving innovation.
  • Oncology is undoubtedly at the forefront of the transformation of China’s pharmaceutical sector.

[1] Pharma R&D Review 2024 (Citeline White Paper); GBI analysis – https://www.citeline.com/-/media/citeline/resources/pdf/white-paper_annual-pharma-rd-review-2024.pdf – consulted on April 30, 25
[2] The dawn of China biopharma innovation – McKinsey & Company – https://www.mckinsey.com/industries/life-sciences/our-insights/the-dawn-of-china-biopharma-innovation – consulted on April 29, 25
[3] Li M, Hu M, Jiang L, Pei J, Zhu C. Trends in Cancer Incidence and Potential Associated Factors in China. JAMA Netw Open. 2024;7(10):e2440381. doi:10.1001/jamanetworkopen.2024.40381 – https://jamanetwork.com/journals/jamanetworkopen/fullarticle/2825140 – consulted on April 30, 25
[4] Pharma R&D Review 2024 (Citeline White Paper); GBI analysis – https://www.citeline.com/-/media/citeline/resources/pdf/white-paper_annual-pharma-rd-review-2024.pdf – consulted on April 30, 25
[5] Biopharmaceutical Outlook for 2025 – Stifel Healthcare – https://www.stifel.com/newsletters/investmentbanking/bal/marketing/healthcare/biopharma_timopler/2025/biopharmamarketupdate_outlook_2025.pdf – consulted on April 29, 25