Nordic Life Science 1
THE CHANGING WORLD // CHINA “We see that China is
increasingly becoming a leader in innovation in different sectors – and Swedish companies notice it as well. More and more international companies are strengthening their local efforts in terms of R&D.” PER PORTÉN T 40 | NORDICLIFESCIENCE.ORG HE CHINESE LIFE science industry is characterized by a strong drive towards innovation, increasing global engagement, and significant market potential fueled by demographic shifts and government support. Mainland China now ranks second only to the US in terms of innovative drug contributions to the global pipeline, accounting for approximately 23% of new drugs, a Clarivate report from late 2024 stated. In terms of regulatory approvals in the country, 48 first-in-class innovative drugs were approved in 2024 and in total, 110 new drugs gained approval last year, according to China’s National Medical Products Administration (NMPA). This is the result of a startegic effort from the Chinese government to boost the life science and other key sectors. Government initiatives such as the 'Made in China 2025' plan, which lists biopharmaceuticals as one of ten prioritized sectors, and the 'Healthy China 2030' initiative, which seeks to increase the value of the health service industry to CNY 16 trillion by 2030, has brought extra attention and resources to life sciences. Increased R&D expenditure Previously, Mainland China was long considered a low-cost biomanufacturer but is now evolving into an R&D powehouse. In 2024, China's total expenditure on R&D exceeded CNY 3.6 trillion, an increase of 8.3% over the previous year, according to the country’s National Bureau of Statistics. “We see that China is increasingly becoming a leader in innovation in different sectors – and Swedish companies notice it as well. More and more international companies are strengthening their local efforts in terms of R&D,” says Per Portén, who is China Country Manager at Business Sweden, and based in Beijing. One example of this is AstraZeneca’s recent announcement to invest USD 2.5 billion to establish a strategic R&D center together with major research and manufacturing agreements in Beijing. A comparison of a selection of economies carried out by the OECD in 2023, showed clearly that China’s investments in domestic R&D surpassed those of the EU and quickly approached the levels of the US. The US and China are now the world’s two largest R&D performers. The gap between them in terms of gross domestic expenditure on R&D (GERD) narrowed significantly in 2023, with China’s R&D spending reaching 96% of that of the US. Per Portén, China Country Manager, Business Sweden International licensing deals International licensing activity involving Chinese companies is surging as well, according to the 2024 Clarivate report. They are actively in-licensing innovative drugs from abroad and out-licensing their own, leading to a significant increase in both the quantity and value of these deals. The value of overseas out-licensing deals by Chinese companies saw a sharp increase from barely USD 1 billion in 2019 to a total transaction amount exceeding USD 35 billion in 2023.