How Strong Is China Innovative Drug Industry? China Emerges as a Global Pharma Innovation Powerhouse
How strong is China innovative drug industry? The answer is increasingly evident as the nation now contributes nearly one-third of all drug candidates under development worldwide.
China’s innovative drug industry is rising at unprecedented speed, reshaping the global pharmaceutical landscape.
✨ During the 14th Five-Year Plan period, China’s pharma sector made comprehensive progress in innovation capability, industrial capacity, supply security, and international cooperation—firmly establishing itself as a major global source of pharmaceutical innovation.
China Now Accounts for About One-Third of Global Pipeline Drugs
China has become one of the world’s most active centers for drug discovery:
- 💊 The number of new drugs under development in China represents roughly one-third of the global pipeline.
- ✅ In 2024, the number of drug molecules designed in China surpassed those from the U.S. and Europe for the first time.
- 📈 Innovative drugs remain the fastest-growing segment of the domestic pharma market, with expected 20% annual growth over the next five years.
Breakthrough Innovations Accelerate
China’s capacity for original innovation continues to rise:
- 🔬 From 2018 to 2024, the number of Category 1 innovative drugs approved increased more than fivefold.
- 💰 Several first-in-class or best-in-class products achieved commercial success, with multiple drugs surpassing RMB 1 billion in annual sales.
- 💊 Global “star products” have emerged, such as BeiGene’s zanubrutinib, which recorded over USD 2.6 billion in global revenue in 2024.
Industrial Capacity Strengthens in China Innovative Drug Industry
China has built a modern pharmaceutical manufacturing system:
- 👉 Domestic capabilities in key APIs, excipients, and advanced manufacturing equipment have significantly improved.
- 💸 Investments in biologics manufacturing—antibodies, ADCs, cell and gene therapy—have expanded rapidly.
- 🎯 National mechanisms for essential-drug supply and emergency reserves have strengthened supply chain resilience.
A Convergence of Talent, Capital, and Policy
Multiple forces are driving China’s innovation surge:
- 🧑🔬 A wave of returnee scientists and former MNC researchers launched biotech startups, bringing cutting-edge technology and global R&D experience.
- ➡️ Major domestic pharma companies are shifting decisively from generic drugs to innovation-driven strategies.
- 🧑💼 Strong capital inflows—VC/PE, STAR Market, and HKEX Chapter 18A—have fueled early-stage biotech development.
- 📃 Regulatory reforms such as priority review, breakthrough designations, conditional approval, and clinical trial notification have dramatically shortened approval timelines.
👉 These measures demonstrate how strong is China Innovative Drug Industry. It has become, with improved efficiency, shorter approval timelines, and closer alignment with global standards.
International Expansion Enters an Explosive Phase
China’s innovative drugs are rapidly globalizing:
- To date, 8 Chinese innovative drugs have been approved by the U.S. FDA, with more than 10 obtaining registrations in advanced markets.
- 2025 is a record-breaking year for BD transactions:
- China’s license-out deals in 2025 account for 33% of global innovation BD value (vs. <1% in 2016).
- Multiple blockbuster deals emerged, including:
- Livzon × Pfizer: USD 1.25 billion upfront—historic record.
- Innovent × Takeda: USD 11.4 billion—the largest BD deal in China’s history.
- Chinese innovation is shifting from “borrowing a ship to go overseas” (license-out) to “sailing its own ship internationally”—conducting global clinical trials, building overseas supply chains, and preparing local commercialization teams.
Here is more about the FDA. 🔻
From “Borrowing a Ship” to “Sailing Its Own Ship”
Historically, Chinese companies relied on licensing partnerships—“borrowing a ship to go overseas.”
But the next phase of globalization is already emerging.
✨ Leading Chinese innovators are now preparing to independently conduct clinical trials in Europe and the U.S., file global regulatory submissions, build overseas manufacturing capacity, and establish localized commercial teams—marking a transition toward “sailing their own ship overseas.”
Conclusion: A Global Innovation Powerhouse
China is now the world’s second-largest pharmaceutical market, with its innovative drug sector exceeding RMB 100 billion.
Supported by a mature CRO/CDMO ecosystem and competitive costs, Chinese companies are moving from fast-followers to first-in-class innovators.
The Role of Cross-Border Pharmaceutical Suppliers: DengYue Medicine as a Key Facilitator
As Chinese innovative drugs become increasingly global, cross-border pharmaceutical suppliers like DengYue Medicine play a growing role in enabling international access.
DengYue, a Hong Kong–certified cross-border medicine distributor, provides:
- Compliant sourcing of innovative therapies
- Safe and transparent distribution channels
- Timely support for overseas clients seeking China-developed medicines
- Facilitation of global patient access as more Chinese drugs enter international markets
💡 With the rapid expansion of China’s innovative drug pipeline and increasing global approvals, trusted suppliers such as DengYue are becoming essential partners in connecting China’s innovation with worldwide demand.
