China's 2023 Pharmaceutical R&D Strength Rankings Unveiled

New drug research and development is one of the most complex intellectual activities of mankind, an everlasting theme in the pharmaceuticals industry, and the cornerstone for the survival and growth of pharmaceutical enterprises. In recent years, China’s national drug regulatory authorities have been continuously issuing policy benefits, successively introducing a number of systems including priority review and approval, reform of registration categories, and the Marketing Authorization Holder system, optimizing various aspects such as the R&D, evaluation, production, and reimbursement of innovative drugs.

At the same time, the capital market, including Hong Kong's 18A and the STAR Market, has provided an excellent financing platform for innovative drugs. With the dual drivers of favorable policy support and a thriving capital market, new drug research and development in China has experienced rapid growth, bringing more treatment options to patients both domestically and internationally, and making significant contributions to human healthcare and rehabilitation.

At the same time, new drug research and development is characterized by long cycles, high investment, and high risks. "It is precisely because it is difficult that it shows courage and determination; it is precisely because of steadfast action that it becomes precious." Successful new drug development not only wins success and honor for researchers but also brings substantial returns to research institutions.

To uncover the innovative forces driving pharmaceutical R&D, encourage and commend companies that have made significant contributions to pharmaceutical R&D, and further enhance the industry's emphasis on pharmaceutical R&D innovation,The Organizing Committee of the 8th China Pharmaceutical R&D & Innovation Summit and the Expert Committee of the 2023 China Pharmaceutical R&D Strength Rankings have selected the "2023 China Pharmaceutical R&D Strength Rankings" series of lists and the "2023 China Pharmaceutical Innovation Leadership Award.", officially released at the "2023 High-Quality Development Conference of the Greater Health Industry and the 8th China Pharmaceutical R&D • Innovation Summit (PDI)."

"2023 China Pharmaceutical R&D Strength Ranking"This is the eighth release since 2016. The series of rankings this time consists of six major lists: "2023 China Pharmaceutical R&D Comprehensive Strength Ranking" (General List), "2023 China Chemical Medicine R&D Strength Ranking" (Chemical Medicine List), "2023 China Traditional Chinese Medicine R&D Strength Ranking" (Traditional Chinese Medicine List), "2023 China Biopharmaceutical R&D Strength Ranking" (Biopharmaceutical List), "2023 Top 20 CRO Companies in China" (CRO List), and "2023 Top 20 CDMO Companies in China" (CDMO List).

"General List", "Chemical Medicine List", "Traditional Chinese Medicine List", "Biological Medicine List" Four Major ListsCompiled by Yaozhi Network, the Expert Committee of the Pharmaceutical R&D Strength Rankings, and the Organizing Committee of the 2023 China Pharmaceutical R&D & Innovation Summit, based on a comprehensive statistical analysis of multiple R&D-related data from enterprises, including the status of drug applications and approvals in 2022, R&D investment funds of pharmaceutical companies, clinical trials of drugs, patents, and historical rankings of enterprises’ drug R&D. The influence of market and sales layouts on enterprises has been excluded.(For the detailed scoring rules of the ranking, please refer to Attachment 1 of this article: "Statistical Rules for the 2023 China Pharmaceutical R&D Strength Ranking")。

• "Overall Ranking"The top three are Hengrui Pharma, Fosun Pharmaceutical, and CHIATAI TIANQING; among them, Hengrui Pharma has retained the top position on the "general list" for the 6th consecutive year, while Fosun Pharmaceutical and CHIATAI TIANQING have consistently ranked in the top three.

• "Chemical Medicine Ranking"The top three are Hengrui Pharma, Qilu Pharmaceutical, and CHIATAI TIANQING; this is also the fourth consecutive year that Hengrui Pharma has claimed the top spot on the "Chemical Pharmaceuticals List," with Qilu Pharmaceutical's ranking rising again to second place.

• "List of Traditional Chinese Medicine"The top three are Kangyuan Pharmaceutical, Yiling Pharmaceutical, and China Traditional Chinese Medicine Holdings. Among them, Kangyuan Pharmaceutical once again topped the list, and China Traditional Chinese Medicine Holdings entered the top three.

• "Biopharmaceuticals List"The top three are Fosun Pharmaceutical, Hengrui Pharma, and Innovent Biologics. Fosun Pharmaceutical regained the top position after two years.

"Top 20 CRO/CDMO Companies in China’s Pharmaceutical Industry 2023"The two major lists are strictly selected based on 10 criteria: annual total revenue (total operating revenue), annual revenue growth, net profit, net profit growth, R&D investment, R&D investment growth, workforce size, workforce size growth, brand recognition, and leadership in niche markets. These represent the highest standards in China's pharmaceutical CRO/CDMO industry.(For the detailed scoring criteria of the list, please refer to Attachment 2 of this article: "Statistical Rules for the Top 20 CRO/CDMO Enterprises in China's Pharmaceutical Industry 2023")。

• "CRO Ranking": WuXi AppTec, Pharmaron, and Tigermed are honored to be included in the list;

• "CDMO List": Wuxi Biologics, Asymchem, and Porton Advanced Solutions among others are honored to be included in the list.

To celebrate the spirit of scientific exploration and promote the innovative development of the pharmaceutical industry, this year's China Pharmaceutical R&D Innovation Summit has added the "China Pharmaceutical Innovation Leadership Award" to recognize leading figures in pharmaceutical innovation who have made outstanding contributions to China's pharmaceutical R&D innovation and achieved significant accomplishments within the year.

"2023 China Pharmaceutical Innovation Leadership Award"Based on the rankings of the "2023 China Pharmaceutical R&D Comprehensive Strength Top List," "2023 China Chemical Medicine R&D Strength Top List," "2023 China Traditional Chinese Medicine R&D Strength Top List," "2023 China Biopharmaceutical R&D Strength Top List," "2023 China Pharmaceutical CRO Enterprise Top 20," and "2023 China Pharmaceutical CDMO Enterprise Top 20," companies ranked at the top are selected as winners to be qualified for inclusion.(For the detailed scoring criteria of the list, please refer to Attachment 3 of this article: "2023 China Pharmaceutical Innovation Leadership Award" Selection Rules)。

• "2023 China Pharmaceutical Innovation Leadership Award"The list includes 14 individuals, including (ranking不分先后):

Attachment 1: Statistical Rules for the "2023 China Pharmaceutical R&D Strength Ranking"

The 2023 China Pharmaceutical R&D Power Ranking consists of the "2023 China Comprehensive Pharmaceutical R&D Strength Ranking" (hereinafter referred to as the "General List"), and three sub-lists: the "2023 China Chemical Drug R&D Strength Ranking" (hereinafter referred to as the "Chemical Drug List"), the "2023 China Traditional Chinese Medicine R&D Strength Ranking" (hereinafter referred to as the "Traditional Chinese Medicine List"), and the "2023 China Biopharmaceutical R&D Strength Ranking" (hereinafter referred to as the "Biopharmaceutical List").

The statistical content mainly includes: the score of drug acceptance and approval in 2022, the score of pharmaceutical companies' R&D investment, the score of drug clinical trials, the patent score, and the score of the historical drug R&D ranking of enterprises.

1. Ranking Scoring Rules

The ranking criteria of this list were formulated by the Expert Committee of the Pharmaceutical R&D Strength Rankings and the Organizing Committee of the 2023 China Pharmaceutical R&D & Innovation Summit, based on relevant data calculations.

(1) "General Ranking" Scoring Rules

The "Overall Ranking" is calculated based on the scores from five components in proportion: the 2022 drug approval score, pharmaceutical companies' R&D investment score, clinical trial score, patent score, and the historical drug R&D ranking score of enterprises (2022). The R&D investment score only applies to listed companies or those providing audited data; companies without R&D investment data will not have this component calculated. For companies without R&D investment data, the total score is calculated based on the remaining four components in proportion: the 2022 drug approval score, clinical trial score, patent score, and the historical drug R&D ranking score of enterprises (2022) (the proportion of each part is shown in Table 1-1).

Table 1-1 "General Ranking" Score Components and Proportions

(2) "Chemical Medicine Rankings" Scoring Rules

The "Chemical Pharmaceutical Ranking" is calculated based on four components: the score for drug application and approval in 2022, the R&D investment of pharmaceutical companies, the completion status of clinical trials for drugs, and the historical drug R&D ranking of enterprises (2022). The R&D investment component only applies to listed companies or those providing audited data; companies without R&D investment data are not scored for this item. For companies without R&D investment data, their total score consists of three parts: the score for drug application and approval in 2022, the completion status of clinical trials for drugs, and the historical drug R&D ranking of enterprises (2022) (the proportion of each part is shown in Table 1-2).

Table 1-2 "Chemical Medicine Rankings" Score Components and Proportions

(3) "Biopharmaceutical Rankings" Scoring Rules

The scoring rules for the "Biological Medicine List" are the same as those for the "Chemical Medicine List" (the proportions of each part are shown in Table 1-3).

Table 1-3 "Biological Medicine Rankings" Score Components and Proportions

(4) "TCM List" Rating Rules

The "Traditional Chinese Medicine Ranking" is calculated based on five components in proportion: the score for drug approval status in 2022, the R&D investment of pharmaceutical companies, the completion status of clinical trials of drugs, the academic output score in 2022, and the historical drug R&D ranking scores of enterprises (2022, 2021). Among these, due to the difficulty of R&D in traditional Chinese medicine and the currently limited number of applications and approvals for TCM by enterprises, the registration application situation alone cannot fully reflect the R&D situation of enterprises. Therefore, the academic output score for 2022 has been included. Additionally, the R&D investment situation only applies to listed companies or companies providing audited data; companies without R&D investment data do not have this component calculated. The total score for companies without R&D investment data consists of four parts: the score for drug approval status in 2022, the completion status of clinical trials of drugs, the academic output score in 2022, and the historical drug R&D ranking scores of enterprises (2022, 2021) (the proportion of each part is shown in 1-4).

Table 1-4 "TCM Ranking" Score Components and Proportions

Note: In the historical ranking score items, the score of the 2022 China Traditional Chinese Medicine R&D Strength Ranking accounts for 6%, and the score of the 2021 China Traditional Chinese Medicine R&D Strength Ranking accounts for 4%.

2. Special Notes

(1) Explanation of Special Bonus Items

a. In 2022, domestic companies that filed drug applications with the FDA or the EU, and those that obtained approval for marketing or clinical trials, will be given appropriate bonus points.

b. Appropriate bonus points will be given to major special projects, specially approved varieties, and priority review varieties.

c. In 2022, companies in China involved in major project transactions (with a transaction value exceeding RMB 100 million) related to new drug development projects domestically and internationally will be given appropriate bonus points.

d. Registered clinical trials that made actual progress in the year will be given appropriate bonus points for the companies involved.

e. Enterprises that have won major national science and technology awards will be given appropriate bonus points;

f. TCM enterprises that add new protected TCM varieties or register TCM formula granules will receive appropriate bonus points.

(2) Description of the Weighting of Drug Registration Categories

In calculating the scores for the acceptance and approval of drugs in 2022, different weights were assigned to different drug registration categories (such as Chemical Drug Class 1, Chemical Drug Class 2, etc.) to reflect differences in pharmaceutical R&D capabilities.

(3) Description of Data Sources

The data is sourced from the "Pharmaceutical Registration and Acceptance Database" by Yaozhi. The entities include pharmaceutical companies, research institutes (excluding universities and hospitals), etc. The scores for acceptance status (undertaking date: January 1, 2022 – December 31, 2022) and approval status (status start date: January 1, 2022 – December 31, 2022) are calculated based on data from the "Pharmaceutical Registration and Acceptance Database" by Yaozhi. The clinical trial registration completion score is calculated using data from the "China Clinical Trial Database." The patent score is derived from data in "Yaozhi Patent Access." Information on R&D investment funds of pharmaceutical companies is sourced from the 2022 annual reports of major listed pharmaceutical companies, including a. Shanghai Stock Exchange, Shenzhen Stock Exchange, Hong Kong stocks, New Third Board, Growth Enterprise Market, and U.S. stocks; b. Companies planning to go public that have issued prospectuses; c. Non-listed companies that voluntarily provide audit reports.

It is worth noting that this year's ranking is mainly based on the comprehensive scoring of enterprises' "2022 single-year indicators" by weight, and in principle, it only represents the R&D strength and brand awareness of enterprises in 2022. This ranking is the 8th release (published once a year). The Expert Committee of the Pharmaceutical R&D Strength Ranking and the Organizing Committee of the 2023 China Pharmaceutical R&D & Innovation Summit adhere to the principles of professionalism, dedication, integrity, and responsibility, striving for fairness and justice. However, there may be shortcomings in the scoring, and we sincerely ask for your understanding.

Expert Committee of the Pharmaceutical R&D Strength Rankings

Organizing Committee of the 2023 China Pharmaceutical R&D · Innovation Summit

June 2023

Attachment 2: Statistical Rules for "Top 20 CRO/CDMO Companies in China's Pharmaceutical Industry 2023"

This ranking is divided into "Top 20 CRO Enterprises in China's Pharmaceutical Industry 2023" and "Top 20 CDMO Enterprises in China's Pharmaceutical Industry 2023" based on business direction. The ranking scoring involves multiple indicators, including annual total revenue, annual revenue growth (%), net profit, net profit growth (%), R&D investment, R&D investment growth (%), personnel scale, personnel scale growth (%), brand awareness (voting score), leading position in niche markets, and other 10 indicators. The proportion of each indicator is shown in the table below. For listed companies, data is directly taken from their annual reports; for non-listed companies, data is submitted by the enterprises and confirmed by the expert committee.

Data Source: The data in this list pertains to pharmaceutical CRO or CDMO business operations and excludes data related to non-pharmaceutical sectors such as medical devices, as well as non-outsourcing services. For listed companies, the data is derived from their annual reports, while for non-listed companies, the data is submitted by the companies themselves and verified by an expert committee.

Expert Committee of the Pharmaceutical R&D Strength Rankings

Organizing Committee of the 2023 China Pharmaceutical R&D · Innovation Summit

June 2023

Attachment 3: Selection Rules for the "2023 China Pharmaceutical Innovation Leadership Award"

To celebrate the spirit of scientific exploration and promote the innovative development of the pharmaceutical industry, the China Pharmaceutical R&D · Innovation Summit has established the "China Pharmaceutical Innovation Leadership Award" as part of its annual influential figure selection to honor pharmaceutical innovation leaders who have made outstanding contributions to China's pharmaceutical R&D and innovation and achieved significant accomplishments within the year.

The "2023 China Pharmaceutical Innovation Leadership Award" is based on the rankings of the "2023 China Pharmaceutical R&D Comprehensive Strength Ranking," "2023 China Chemical Medicine R&D Strength Ranking," "2023 China Traditional Chinese Medicine R&D Strength Ranking," "2023 China Biopharmaceutical R&D Strength Ranking," "2023 Top 20 China Pharmaceutical CRO Enterprises," and "2023 Top 20 China Pharmaceutical CDMO Enterprises." The award selects leading enterprises from these rankings to qualify for inclusion.

Enterprises that meet the eligibility criteria will internally recommend the chief R&D leader or other senior executives in charge of R&D, such as the vice general manager, general manager, or chairman. After confirming the candidates, a reply form should be filled out and submitted to the Organizing Committee of the 8th China Pharmaceutical R&D Innovation Summit. The Expert Committee of the 2023 China Pharmaceutical R&D Comprehensive Strength Ranking List will conduct a special evaluation and recognition process to select the annual "2023 China Pharmaceutical Innovation Leadership Award."

2023 China Pharmaceutical R&D Comprehensive Strength Ranking Expert Committee

Organizing Committee of the 8th China Pharmaceutical R&D · Innovation Summit

June 2023

Editor: Liu Li

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