According to the Drug Information Association (DIA), the Chinese pharmaceutical market is still expanding rapidly, as the National Medical Products Administration (NMPA) approved 84 new drugs in 2024, 12% higher than in 2023 and way more than the 50 novel medicines approved in the U.S in 2024. during the same period. It reflects China’s rising appeal to international drug-makers and the large increase of China’s domestic drug maker’s success – all wanting to enter the second-largest pharmaceutical market in the world.
Most drug approvals were for small molecules, with biologics in second place. Oncology was responsible for 37% of all new approvals in 2024, primarily focused on non-small cell lung cancer (NSCLC). China is still the country with the highest number of smokers globally. Drug approvals in other areas include cardiometabolic diseases (18%) and rare diseases (10%) – that can generate significant profit from targeted treatments. At the same time, breakthroughs were made in neurology with the Alzheimer’s drugs donanemab and lecanemab. The immunology sector is still far behind – with historic drug approval success rates only in the single digits.
The majority of approvals were secured by multinational companies, with 50 foreign drugs entering the Chinese market. Local firms have been catching up as well, with 34 domestic approvals. The rapid growth of China’s biopharmaceutical industry is drawing in many global players. However, despite these increases in drug approvals, China drug reimbursement has decreased in most cases.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.