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Global pharma firms to increase investments in mainland China
Bayer Co.Lab will strengthen biotech collaborations in Mainland China, driving local drug discovery and R&D. Government initiatives and multinational investments are set to accelerate the pharmaceutical sector's growth.
Bayer Co.Lab will enhance biotech partnerships in Mainland China, supporting local drug discovery and R&D. Government efforts and multinational investments are poised to boost the pharmaceutical sector’s growth.
Key takeaways
- Bayer’s new Shanghai incubator will foster biotech innovation and local drug discovery partnerships in China.
- Multinational drugmakers like AstraZeneca and Novartis are increasing R&D investments in Mainland China’s growing market.
- China’s government is driving biotech innovation with incentives, boosting global partnerships and domestic drug development.
Bayer Co.Lab will facilitate local partnerships in Mainland China and enable pharmaceutical drug discovery by local players.
On September 27 2024, Bayer inaugurated its first life science co-creation platform called Bayer Co.Lab in the Shanghai Innovation Park in Zhangjiang Science City. Bayer Co.Lab is part of the global network of life science incubators situated in key innovation hubs, including Cambridge (US), Kobe (Japan) and Berlin (Germany).
The establishment of Bayer Co.Lab in Shanghai represents a major milestone in Bayer’s external innovation strategy, aimed at fostering open collaboration within the biotechnology ecosystem in Mainland China.
The incubator will provide state-of-the art laboratories, collaborative working space and tailored support for startups in the country. The aim is that through multi-party collaboration, Bayer can quickly identify early-stage innovations for unmet medical needs.
Bayer Co.Lab in Mainland China expects to recruit a total of 10 biotech startups in the fields of cell and gene therapy, oncology, cardiovascular diseases, immunology and inflammation, rare diseases and ophthalmology. Through Bayer Co.Lab, the drugmaker will deepen local partnerships in Mainland China to drive healthcare innovation in the market
Multinational drugmakers will expand footprint in Mainland China, with a key focus on R&D. Bayer has been continuously investing in innovation in Mainland China over the past few years. Currently, Bayer operates two R&D and innovation centers and six production plants in Mainland China.
Between 2019-2024, Bayer has obtained approval for nearly 30 new prescription drugs in the market, with new drugs being launched in Mainland China almost simultaneously with the other parts of the world. In 2023, Bayer also inaugurated an Open Innovation Center in E-Town in Beijing.
Additionally, in September 2024, AstraZeneca announced that it will add 10 to 15 new projects to the company’s R&D pipeline in Mainland China each year, reflecting its increased investment and level of commitment in the market.
In July 2024, Novartis kicked off the construction of its production base for innovative drugs in Mainland China. Expected to be completed by the end of 2026, the facility will be Novartis’ first production base for its radioligand therapy, a cancer treatment drug using radioactive isotopes.
In 2023, Takeda launched the Digital Innovation Academy with Fudan University’s Intelligent Medicine Institute to promote the integration of digital products into the R&D process for medicines. As such, strategic opportunities are attracting more multinational pharmaceutical companies to expand their footprint in Mainland China, demonstrating the strong pull of the market.
Mainland China’s Government Work Report will boost market appeal for drugmakers and facilitate sector growth. Mainland China’s government will remain committed to developing the innovative drug market and will continue to invest in R&D for innovative medicines.
In March 2024, Mainland China’s State Council rolled out a host of measures to bolster the development of ‘new quality productive forces.
The Government Work Report, approved by legislators at the second session of the 14th National People’s Congress, outlined steps to modernise the country’s industrial system, including stronger measures that will harness the role of innovation.
More specifically, Mainland China has developed a comprehensive national strategy to enhance the innovation capabilities of its domestic biotech industry.
The strategy includes subsidies, financial incentives, the initiation of national reimbursement for innovative therapies and the establishment of high-tech science parks to foster innovation.
Several indicators suggest that Mainland China’s domestic biotech industry is becoming more innovative. These include a growing number of novel drugs from Mainland China being approved by the US FDA and an increase in out-licensing deals from Mainland China-based biotech companies, particularly in oncology.
For instance, in 2023, the US FDA approved three drugs from Mainland China, Loqtorzi (toripalimab) for nasopharyngeal cancer, Fruzaqla (fruquintinib) for metastatic colorectal cancer and Ryzneuta (efbemalenograstim) for the treatment of chemotherapy-associated neutropenia.
Additionally, some of the biggest global drugmakers, undeterred by geopolitical tensions, are still looking for deals in Mainland China to replenish drug pipelines and boost their presence in the world’s second-biggest pharmaceutical market.
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