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China has established itself as a global leader in pharmaceutical innovation and is expected to maintain this prominence in the coming years, according to the country head of a major Japanese pharmaceutical company.
“I strongly believe that China holds significant growth potential and maintains a strategic global importance,” said the executive, who was appointed president of the company’s China operations in April. “As a major force in global pharmaceutical innovation, China will continue to drive industry-wide transformation.”
As the second-largest pharmaceutical market worldwide, China boasts a vast scale, rapid growth, and strong policy backing, the executive noted.
In oncology, China accounted for over 24.1% of new cancer cases and 26% of cancer-related deaths globally last year, both the highest figures worldwide, based on data from the National Cancer Center.
“Regarding chronic diseases, nearly 400 million people in China live with long-term conditions,” the executive added. “Cardiovascular and cerebrovascular diseases are the leading causes of death, creating an urgent need for more effective treatments.”
The rapid growth of the pharmaceutical sector is partly driven by an aging population; more than 20% of the Chinese population was over 60 years old at the end of last year.
“At the same time, with the ongoing advancement of health initiatives in China, the emphasis on wellness has become deeply ingrained in people’s minds,” he explained. “This huge demand, combined with rising health awareness nationwide, has accelerated the expansion of the healthcare market.”
The government’s strong commitment to fostering innovative medicines has created a favorable environment for foreign companies. Progressive policies include expedited drug approvals, broader inclusion in the national reimbursement list, and flexible manufacturing frameworks.
Recently, a local regulatory authority approved a new drug from the company for treating metastatic HER2-negative breast cancer, marking the second approval of its kind in China, after a similar drug received approval earlier this year.
In terms of manufacturing investments, the company announced last November a plan to invest approximately 150 million USD to build a new antibody-drug conjugate (ADC) production facility in Shanghai’s Pudong area. The goal is to improve supply stability and respond faster to market needs.
“This new plant will strengthen our local manufacturing capacity to ensure a steady supply and meet the rising demand for cancer therapies,” the executive said. “As one of the first ADC pilot programs in Shanghai, it aligns well with China’s biomedicine policies.”
The country’s regulatory body launched a pilot program last October to facilitate segmented production of biologics like ADCs, allowing differentiated manufacturing processes until the end of next year. This strategy aims to reduce fixed asset investments, unlock innovation potential, and develop a more advanced, globally integrated supply chain.
Despite increasing competition, the company’s ADC platform remains a central pillar of its leadership in precision oncology. The global ADC market reached nearly $10.8 billion last year, with a leading drug generating over $3.8 billion in sales.
Chinese pipeline drugs now constitute about 40% of global ADC development, with total business transactions in China’s sector surpassing $40 billion between 2021 and 2024. Industry forecasts project that China’s ADC market will grow from about $112 million last year to over $9.3 billion by 2030, with an annual growth rate nearing 73%.
“Competition drives innovation,” the executive stated. “China’s rapid progress in ADC development is impressive. While this brings fierce rivalry, it also opens up numerous opportunities.”
The Chinese ADC landscape includes notable players like Biocytogen Pharmaceuticals, Dac Biotechnology, Affinity Biopharmaceuticals, and Medilink Therapeutics, with Biocytogen leading in pipeline size.
The company is open to collaborative competition, emphasizing the benefit to patients. It is also expanding its R&D footprint in China, with 30 clinical trials underway focused on breast, lung, and gastric cancers involving its ADC drugs.
Beyond ADCs, the company’s pipeline includes therapies like Quizartinib, under review in China for leukemia, and Valemetostat Tosilate, already approved in Japan for certain leukemias and lymphomas.
Despite challenges such as high research and development costs and regulatory hurdles, the company is exploring innovative pricing and partnership models to improve drug accessibility, ensuring more patients can access their treatments promptly.
Looking ahead, the company’s vision for 2030 aims to transform it into a leading global healthcare innovator, with China playing a key role. The new ADC manufacturing plant, together with ongoing R&D efforts and reimbursement strategies, will position the company to meet China’s growing healthcare needs.
This strategy involves increasing localized clinical trials, fostering diverse stakeholder collaborations, and developing a pipeline that addresses unmet medical needs. The goal is to serve as a bridge connecting global innovation with local demands, supporting sustainable growth and improving health outcomes for Chinese patients.
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