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Summary: China’s biopharma sector has seen a major shift from formerly generics-focused play to the one that encourages and concentrates on innovation, along with profound implications for patients and industry peers.
FREMONT, CA:A momentous shift from a formerly generics focused play into one that encourages innovation, along with profound implications for patients and industry peers has been experienced by China's biopharmaceutical ecosystem.Highlighted by substantial value creation on global capital markets, innovation in Chinese biopharma is close to becoming a notable story. The market value of publicly listed biopharma innovation players from China such as the Nasdaq, Shangai Stock Exchange Science and Technology Innovation Board (STAR) and Hong Kong Stock Exchange (HKEX) reached 380 billion dollars in July 2021, from 3 billion dollars in 2016.
Of the total, the China originated biotechnology companies independently have accounted for 180 billion dollars. Additionally, with 23 IPOs in the last year alone, the public debuts for Chinese players have also revived. Therefore, as seven out of the world's top ten largest biopharma IPOs have originated from China from 2018 to 2021, the Chinese biotechs are currently leading on IPO fundraising.
Additionally, the rising demand for new drug discoveries with the potential to satisfy the domestic market needs and beyond has helped China increase its share of the global pipeline from 4.1 percent in 2015 to 13.9 percent in 2020.
Moreover, in enabling Chinese biopharma to emerge on the global innovation stage, regulatory reforms, the emergence of bioclusters in areas such as the city of Suzhou, the opening of China's capital markets, and the talent returning from overseas have played a vital role. McKinsey maintains the China Drug Innovation Index (CDII) in order to comprehend how China's biopharma innovation ecosystem is evolving and to obtain a more subtle sense regarding its growth drivers. This survey that was first launched in 2016 questions the industry experts to measure five dimensions that support healthy biopharma innovation such as policy environment which is split between regulatory reforms and market access policies, funding, research and development, local innovation output, and integration with global markets.