With China ahead of other major global economic powers in its recovery from the COVID-19 pandemic, its biopharmaceutical industry is surging, driven by its increased capacity for research and development, growing investment in the sector from venture capital firms and a series of government regulatory reforms that are speeding the approval of new drugs.
Those are the conclusions of a new report on China’s biopharma by New York-based MSQ Ventures. The report says innovation by Chinese firms is moving forward at a rapid pace. It predicts that in 2021 more than 70% of healthcare investment in China will be directed to biopharmaceuticals, that such spending will fuel more than 1,000 clinical trials, and that the investments will lead to the growing licensing of early-stage novel therapies and increasing focus on development of cell and gene therapies.
In addition, the report cites the Chinese government policy of volume-based drug procurement as a major driver in the development of novel drugs, and notes that in 2020, 68 Chinese healthcare companies transitioned from private to public ownership through initial public offerings, the highest ever in a single year.