Intensifying PD-1 Market Competition Drives Multinational Pharma to Forge Alliances with Chinese Biotechs

　　【Pharmaceutical Network Market Analysis】The competition in the PD-1 market is fierce, being called the "King of Involution" in the industry. Data shows that there are currently more than 10 approved PD-(L)1 products on the market in China. Industry insiders indicate that as an increasing number of PD-1 products flood the market, multinational pharmaceutical companies are accelerating cooperation with local Chinese pharmaceutical enterprises.
 

Recently, Bristol-Myers Squibb (BMS) reached a strategic cooperation agreement with Zai Lab. According to the agreement, Zai Lab will be responsible for the commercialization of BMS's PD-1 inhibitor Nivolumab (referred to as "O drug") in 10 provinces including Yunnan, Guizhou, Guangxi, Inner Mongolia, Xinjiang, Gansu, Ningxia, Qinghai, Hebei, and Shanxi. This means that BMS hopes, with the help of the local pharmaceutical company Zai Lab, to lead the O drug in a comeback battle.
 

It is reported that since the launch of Nivolumab, many companies worldwide have been competing to enter the PD-1 market. However, in recent years, cases of halted research and development or terminated collaborations have occurred from time to time. The high threshold for PD-1 development is discouraging more companies from clustering in this field, and new variables in the competitive landscape of PD-1 are quietly unfolding. This collaboration between Bristol-Myers Squibb and Zai Lab will benefit Bristol-Myers Squibb by promoting its business expansion and brand building in China while reducing operational risks. For Zai Lab, it will undoubtedly become a new point of business growth.
 

According to the review, it is not uncommon in recent years for multinational pharmaceutical companies to cooperate with domestic pharmaceutical enterprises in China. For instance, in October 2023, GlaxoSmithKline (GSK) signed an exclusive cooperation agreement with Chongqing Zhifei Biological Products Co., Ltd. to jointly promote GSK's recombinant shingles vaccine, Shingrix, in China in the future. According to the agreement, starting from January 1, 2024, Chongqing Zhifei Biological Products Co., Ltd. will have the exclusive import and distribution rights of the shingles vaccine Shingrix in China.
 

The industry believes that as the vaccine company with the highest market value in China, Chongqing Zhifei Biological Products Co., Ltd. has an excellent track record in promoting the accessibility of innovative vaccines in China. By combining the scale and professional advantages of the two companies, this strategic partnership will significantly enhance the accessibility of Shingrix in China, supporting the rapidly growing population in need of vaccines and future new indications. It is reported that this product is GSK's fastest-growing and highest-revenue vaccine, expected to reach 4 billion pounds by 2026.
 

Pfizer has also made the same choice. On December 1, 2023, Pfizer entrusted Keyuan Trade to exclusively import, distribute, and promote its 13-valent pneumococcal polysaccharide conjugate vaccine (PCV13 vaccine, trade name "Prevenar 13") in mainland China. This collaboration signifies that Pfizer will end its traditional practice of selling vaccines through its own team, ushering in a new business model for vaccines, with local enterprises acting as agents for promotion.
 

Analysts pointed out that China's market has a large population base and relatively adequate medical security, thus it is highly valued by multinational pharmaceutical companies. However, after establishing cooperation with local innovative pharmaceutical enterprises, whether multinational pharmaceutical enterprises can have blockbuster products to fill the gap strongly and whether they can find new growth points have become a major practical issue.
 

Moreover, analysts pointed out that as an increasing number of PD-1 products flood the market, both multinational pharmaceutical companies and local pharmaceutical enterprises are striving to seize opportunities in new indications, combination therapies, and untapped markets to enhance their competitiveness. For instance, since 2020, clinical trials for PD-1 combined with ADC in perioperative patients have gradually commenced, showing a trend of increasing frequency and accelerating progress, which is also expected to become a new "battlefield" for PD-1 in the future.
 

Disclaimer: Under no circumstances shall the information or opinions expressed in this article constitute investment advice to any person.