Establishing an R&D center in China is now a vital task for major pharmaceutical companies in the world.
Major pharmaceutical companies from around the world are flocking to China. They are building a series of R&D centers to take advantage of this nation of 1.3 billion people.
Sanofi, a French multinational pharmaceutical company, has just opened a R&D center in Chengdu. This is also their first R&D center in Asia. The company plans to spend 66 million euros ($ 73.6 million) in the southwestern Chinese city of China to conduct a series of studies on diabetes and immune disease.
China's huge population size will make it easier for pharmaceutical companies like Sanofi to recruit enough volunteers to participate in clinical trials, especially drug tests for rare diseases.
And although the US and China are facing a trade war, their entire pharmaceutical industry is still unharmed. Pharmaceutical companies are still encouraged to invest in China. And when China imports drugs from the United States, those drugs are also not subject to retaliation by Beijing.
China attracts pharmaceutical investment, for a future of drugs Made in China
In recent years, China is gradually losing the advantage of a global manufacturing center due to rising labor costs. However, pharmaceutical corporations still see potential in this country.
They are inviting each other to China to expand R&D activities.
Upjohn, a unit of the US pharmaceutical company Pfizer, also established its global headquarters in Shanghai in May. Upjohn is conducting research to build a database to track patients and drug side effects affecting them.
Shionogi & Co. of Japan is developing some of its new drugs in China. These drugs have even been tested in China before even in Japan, the United States and Europe. Shionogi & Co. Collecting data to prove its safety and feasibility before conducting clinical trials for tuberculosis treatment.
Last year, China's pharmaceutical market reached US $ 137 billion, an increase of 240% compared to 2008 according to IQVIA data. China has become the second largest pharmaceutical market in the world after the United States only. They are expected to continue growing to reach US $ 170 billion by 2023.
Along with that, Beijing is constantly making moves to invite drug developers around the globe.
The first is to build rigorous standards on par with advanced countries.In 2017, China joined an international agency, working together to reach consensus on technical quality parameters. Applicable to the United States, Europe and Japan.
Last year, China's pharmaceutical market reached US $ 137 billion, an increase of 240% compared to 2008
In addition, they relaxed restrictions that allow the use of clinical trial data from abroad. The number of drugs waiting for licensing has also increased. When China adopted a fast tracking system to approve advanced drugs, it shortened the approval process for a new drug by 1-2 years.
In December last year, China became the first country to approve roxadustat, a treatment for anemia caused by chronic kidney disease. The drug was developed by AstraZeneca, a British pharmaceutical company and FibroGen, a US biochemical company.
Until now, roxadustat is still undergoing clinical trials in the United States and Europe. In Japan, the drug is also pending approval.
In studies of stomach cancer and many common digestive problems in Asia, China can now serve as a big stage.
Studies of drug re-use - taking drugs that have been licensed for new medical purposes - are flourishing in the West. This wave will soon begin seriously in China.
Takeda, the largest Japanese product, is planning to develop China into its fourth important strategic market, behind only Japan, the United States and Europe.
Within the next 5 years, the company plans to introduce 10 new products in China. Their Barshe Weber president said it was enough time for Takeda to accumulate new data and knowledge from China.
Drug manufacturers now consider the establishment of a R&D center in a nation of 1.3 billion people a vital task.
Clearly, in the development plan of every pharmaceutical company now, China is a strategic location where they must definitely have an R&D base. Unlike rising labor costs, pharmaceuticals in China are still a promising land.
While home appliances and smart phones have exploded from this country, "Made in China" has not yet proved its worth.
To improve the situation, the Chinese government is extending the "Made in China 2025" initiative to biopharmaceuticals. The goal remains unchanged: Attracting foreign investment, relying on that wave to build the capacity of Chinese drug manufacturers themselves.
