Chinese Drug Outperforms Global Cancer Leader in Trial
China's pharmaceutical industry has reached a significant milestone, with a Chinese drugmaker's therapy outperforming the world's best-selling cancer drug in a clinical trial. This development, coupled with increased licensing agreements and government encouragement, signals a shift in the industry's landscape.
The Chinese government has long been promoting the growth of its pharmaceutical sector. Since the late 1990s, it has encouraged returning scientists to establish companies, fostering innovation and competition. This strategy bore fruit in September 2021 when a Chinese therapy, Ivonescimab, demonstrated more than 11 months of tumor control, surpassing Merck's Keytruda, the global leader, which managed under six months.
This success has led to a surge in licensing agreements between Chinese and global drugmakers. Between 2021 and 2022, such deals nearly quadrupled, with over half targeting the US market. However, geopolitical tensions have cast a shadow over these developments. The Trump administration considered an executive order that could subject Chinese medical treatments to mandatory review by the Committee on Foreign Investment. While the latest US tariffs spared Chinese and US biotech companies, further restrictions remain a possibility.
The exemption from the latest US 100 percent levy on patented drugs provides Chinese pharmaceutical companies with some respite. However, long-term regulatory risks from Washington persist. Despite these challenges, the industry's progress, marked by Ivonescimab's success and increased licensing agreements, indicates a maturing Chinese pharmaceutical sector ready to compete on the global stage.
