Commentary: China’s Biotech Boom Is Redefining Global Pharma

The global prescription drug industry is experiencing rapid growth, valued at approximately $1.23 trillion in 2024 and projected to reach $2.45 trillion by 2032, reflecting a yearly expansion rate of about 9%. This surge is primarily driven by higher incidence rates of chronic disease, an aging global population, and continual advancements in pharmaceutical research and development [para. 1].

China's biotechnology (biotech) sector has transitioned from operating in the background to becoming a prominent global player. In recent years, Chinese firms have evolved from merely licensing Western technologies to independently developing blockbuster drugs, leading international clinical trials, and reshaping global partnership and licensing dynamics. This advancement presents a direct challenge to U.S. leadership in pharmaceutical innovation [para. 2][para. 3].

Chinese pharmaceutical companies have achieved remarkable innovations, with breakthrough drugs generating considerable excitement akin to technologies like DeepSeek’s AI chatbot. Central to this momentum is China’s capacity to conduct research and clinical trials more swiftly and cost-effectively across all phases of drug development [para. 4][para. 3]. The presence of Chinese companies among the world's 50 most innovative drug developers soared: from three in 2010-2014, rising to five later in the decade, and then sharply increasing to 20 between 2020-2024—surpassing their American counterparts [para. 5].

In 2024 alone, China produced over 1,250 new drugs, a figure exceeding Europe’s output and nearly matching the U.S. tally of 1,440 drugs. These include vital treatments for cancer and obesity [para. 6]. Furthermore, Chinese biotechs’ share of global out-licensing deal value rose to 32% in the first quarter of 2025, up from 21% in 2023 and 2024. Total licensing deals involving China increased from 55 in 2015 to 213 in 2024, with deal value ballooning from $3.1 billion to $57.1 billion [para. 7].

At the same time, China has outpaced the U.S. in clinical trials, conducting over 7,100 in 2024 compared to about 6,000 in the U.S. This may result in as much as 37% of licensed molecules by leading pharmaceutical firms originating from China in 2024 [para. 8]. Regulatory agencies like the U.S. FDA and European EMA are now more frequently fast-tracking Chinese drug approvals, with projections that 33 Chinese drugs will achieve such status in 2024 [para. 9].

Major multinational pharmaceutical companies are investing record amounts in Chinese innovations. In 2025, U.S. drugmakers signed 14 licensing deals totaling $18.3 billion, versus just two deals the prior year. AstraZeneca committed over $13.6 billion, and Pfizer devoted $6 billion for a single cancer drug [para. 12][para. 13].

Chinese advances in cell therapy, as demonstrated by products from Legend Biotech, and in cancer treatment—such as Ivonescimab, developed by Akeso Inc. and Summit Therapeutics and shown in 2024 to reduce progression or death risk by 49% over the market leader Keytruda—underline the country’s growing expertise [para. 14][para. 15]. With Merck’s Keytruda set for patent expiry in 2028 and Ozempic by Novo Nordisk becoming the world’s second-highest grossing drug in 2024, Chinese firms are preparing to challenge or even surpass current leaders with new-generation medicines, particularly in light of the country's dramatic increase in obesity rates [para. 16][para. 17][para. 18].

Ultimately, China’s biopharmaceutical surge is the result of coordinated long-term strategies and investment [para. 19]. For global industry stakeholders—especially in the U.S.—proactive engagement and investment are recommended to leverage opportunities or risk falling behind, as the competition for medical innovation intensifies [para. 20][para. 21].