US pharma executives note increasing importance of Chinese R&D

Chinese pharmaceutical enterprises are moving from exporting single products to engaging in systematic and ecological collaborations as part of their global strategy, executives from the United States-based Parexel said during an interview in Shanghai on Wednesday. 

The trend in Chinese enterprises' international partnerships has evolved from isolated asset transactions to platform-based collaborations. According to the executives from Parexel, which provides consulting support for drug development and clinical trials, foreign companies are increasingly interested in leveraging Chinese platforms to enhance their research and development pipelines, rather than merely purchasing individual innovative assets from China.

Another emerging trend involves a division of labor where Chinese companies handle R&D within China, while foreign companies manage the overseas development of these assets.

"This indicates a deeper level of strategic synergy. Also, we are witnessing a profound integration of global R&D efforts," said Zheng Weiling, senior vice-president of Asia Pacific Strategy and head of Greater China at Parexel.

Chinese pharmaceutical companies are expanding their focus beyond oncology to include cutting-edge fields such as antibody-drug conjugates, metabolic therapies and RNA therapies. The acquisition of early-stage Chinese projects by international companies underscored the global recognition of China's innovative strength, Zheng said.

"China currently contributes one-third of the innovative global pipeline of opportunity, up from 15 percent five years ago. It's clear that the biotech opportunity in China is now leading-edge," said Paul Bridges, president of Parexel's consulting organization.

Both executives said they were confident that, with increased investment in basic research, China will produce more new drug targets and mechanisms in the next five to 10 years, propelling its innovative drugs to a world-class level.

On his latest trip to China, Bridges said he observed a favorable industry environment with increased financing, transactions and collaborations, turning previous optimistic expectations into realistic near-term opportunities to go global.

"This is a critical period for Chinese pharmaceutical R&D, filled with challenges, which makes collaborations especially important," he added.