Navigating the Ice and Fire: How Chinese Biopharma Firms Are Banding Together to Thrive in Global Markets

In 2024, the CDMO sector entered a harsh winter: Lonza shut down facilities, Catalent was put up for sale, and the WuXi AppTec group faced severe trials... Meanwhile, U.S. dollar funds continued to be marginalized, and the primary market remained in a deep freeze, pushing the biopharmaceutical industry into an extremely difficult period.

On the other front, the global expansion of China’s biopharmaceutical industry has reached a crescendo, with business development (BD) deals surpassing $10 billion in 2024 alone. Biotech companies are flourishing through diverse internationalization strategies, including independent market entry, out-licensing, and collaborative partnerships. The pace at which Chinese biopharmaceutical innovations are stepping onto the global stage is accelerating. Yet, amid intensifying domestic competition, going global is gradually becoming a crowded “exit strategy.”

Meanwhile, various challenges in the global expansion environment—such as geopolitical factors, international competitive pressures, stringent clinical trial requirements, substantial capital investment, cultural differences, intellectual property protection, and market access barriers—continue to confront China’s biopharmaceutical industry.

As Going Global Becomes an Imperative for Chinese Biopharmaceuticals, How Can Companies Navigate the Extremes to Secure Resources, Build Differentiated Competitiveness, and Select BD Partnerships?On June 18, the “China Biopharma Forum for Global Expansion,” co-hosted by Biologics Development Inc. (BDI), Donning Bio-Pharmaceutical, and E-Pian Manager, was held under the theme “Empowering Global Reach, Expanding Worldwide.” The event brought together dozens of entrepreneurs, scientists, investors, and supply chain experts from large multinational pharmaceutical companies and local innovative biopharma firms to jointly assess emerging trends in global expansion. VCBeat New Medicine has compiled the key insights from the forum, aiming to provide inspiration for industry professionals.

After more than a decade of development cycles, China’s biopharmaceutical industry has reached a critical juncture for either delivering tangible outcomes or facing falsification. On one hand, China has developed numerous products with significant clinical value, such as antibody-drug conjugates (ADCs) and bispecific antibodies, demonstrating proficiency in targeting well-validated mechanisms; however, there remains a relative scarcity of groundbreaking “zero-to-one” innovations. On the other hand, Chinese innovative drugs currently account for only approximately 5% of the global market, indicating that substantial efforts are still required to become a major player in the international arena. In response to these challenges, participating experts shared their insights through keynote speeches and roundtable discussions.

▲ Hu Qicong, Managing Director and Global Partner at Boston Consulting Group

Focusing on the theme of “The Current State of Involution in China’s Biopharmaceutical Industry and Future Breakthroughs,” Hu Qicong, Managing Director and Global Partner at Boston Consulting Group, believes that to address issues such as the relatively lagging R&D progress of some emerging technology platforms and severe homogenization,Primarily Break Through in Four Key Areas:Meticulously refine products to strive for First-in-Class (FIC) or Best-in-Class (BIC) status; proactively and selectively lay out “next-generation” winning technology platforms; deploy light-capital strategies to invest in and incubate earlier-stage innovations; seize opportunities with clear objectives for mergers and acquisitions.

▲ Lai Wang, Senior Vice President and Head of Global R&D at BeiGene

Wang Lai, Senior Vice President and Head of Global R&D at BeiGene, believes that the key factor in the global development of innovative drugs from China is,On the basis of unique product design and differentiated clinical value, companies must adopt a global perspective and positioning, tailoring their clinical development strategies to different markets. At the same time, they must possess absolute execution capability.，“Have the determination to never give up until you reach the Yellow River, and even then, never give up.”

▲ Chen Bing, Vice President of International Business Development, Partnerships, and Strategic Investments at AstraZeneca

Chen Bing, Vice President of International Business Development Cooperation and Strategic Investment at AstraZeneca, believes that despite the current challenging market conditions, the industry will always favor “unicorns” or companies with differentiated value.As Chinese biopharmaceutical companies continue to expand and strengthen their capabilities in star fields such as antibody-drug conjugates (ADCs) and cell and gene therapy (CGT), numerous opportunities for collaboration and business development (BD) will persist. Whether seeking capital investment or partnering with major pharmaceutical companies through BD to successfully enter global markets, success hinges on two core factors: the ability to instill confidence in regulatory authorities across different markets, and the sufficiency of product innovation.

Centering on the global expansion and transformation of innovative pharmaceutical companies, the forum hosted roundtable discussions titled “Transformation and Upgrading of Innovative Biopharmaceutical Enterprises” and “Innovation and Global Expansion Opportunities for China’s Biopharmaceutical Industry in the Current Landscape.” Multinational pharmaceutical companies, innovative drug developers, supply chain enterprises, and CDMOs jointly participated in the discussions.

▲ Roundtable Discussion: Transformation and Upgrading of Innovative Biopharmaceutical Enterprises

 ▲ Roundtable Discussion: Innovation and Global Expansion Opportunities for China’s Biopharmaceutical Industry in the Current Landscape

Multiple speakers emphasized that drug development is inherently a long-term endeavor; one must never lose sight of this reality. It requires patience and a deep sense of mission, rather than blind trend-chasing. Success demands strategic contraction, focused efforts, in-depth expertise, and meticulous refinement.Furthermore, innovative drug companies must consider how to strategically position their innovative products in both the short and long term. When facing global expansion and business development (BD), the most critical factor is possessing outstanding, “Olympic champion”-level product data.

From a broader perspective, the global expansion of China’s biopharmaceutical industry requires more than just innovation from biotech firms; it also necessitates building domestic bioprocessing supply chains that meet international standards, along with CDMO services, resource connectivity, channel development, and an investment-friendly environment. Only through collaborative efforts can we gradually establish a proactive global ecosystem for Chinese biopharmaceuticals.

Wei Jianzhong, President of Biologics Manufacturing Corporation (BMC), stated in his forum remarks, “At present, it is crucial for the upstream and downstream segments of China’s biopharmaceutical industry to ‘join forces for mutual support.’ For biopharmaceutical companies to expand globally, they must leverage complementary advantages and advance together. By combining BMC’s strengths in efficiency, quality, and cost control with Duoning Bio’s domestically leading one-stop solutions for bioprocessing, local biopharmaceutical enterprises will enhance their competitiveness through low costs and high profit margins, thereby jointly entering the global market for innovative drugs.”

▲ Wei Jianzhong, President of Dingkang Biologics

Wei Jianzhong emphasized that one of the key pain points on the path to internationalization for innovative drugs is CMC capability.“The long development cycle of innovative drugs means that selecting partners is a critical decision for the coming years, or even decades. Amidst the major wave of global expansion, both overseas and domestic biotech companies must prioritize whether potential partners possess comprehensive CMC capabilities and regulatory submission expertise in international markets.”

In an interview, Wei Jianzhong provided further interpretation:CMC capabilities and overseas regulatory submission capabilities are key indicators of a CDMO’s internal competence and strength.Taking the multiple overseas biopharmaceutical companies that have recently partnered with Dingkang as examples, biotech firms place significant emphasis on several key capabilities of CDMOs, including: Does the CDMO possess a mature R&D and manufacturing service team with a long-term international perspective? Do its product and service systems comply with international standards? Does the company team demonstrate long-term stability? What is its track record in terms of past performance, R&D, and audit experience? In terms of integration with overseas markets, how robust are its technology transfer, quality systems, and process capabilities? Does the company embody an internationalized corporate culture and mindset?

Wei Jianzhong noted that Western biotech firms are more mature in selecting partners, placing strong emphasis on long-term corporate stability and conducting rigorous comparative assessments of data and performance.In the past, Chinese CDMOs expanding overseas were often perceived as engaging in low-price bidding to highlight their cost advantages. However, excessively low quotes tend to raise concerns among European and American biotech companies regarding the service providers’ actual capabilities, potentially creating hidden risks for drug development in long-term collaborations. Consequently, these clients are more inclined to seek a balance between price and quality.Additionally, before and after the contract signing, Biotech will continuously dispatch teams for on-site visits, including technical, commercial, and quality audits, to thoroughly assess the CDMO’s capabilities.

Similar to CDMO companies, domestic supply chain enterprises also face intense competition in scaling up and meeting international standards—encompassing product portfolio layout, capacity building, patent architecture, quality control, cost reduction and efficiency improvement, price wars, and R&D teams. Amidst multi-party gaming and resource integration,The strength of domestic substitution and customer-oriented innovation are the fundamentals for supply chain enterprises to “band together for mutual support.”

▲Sun Qing, President and Chief Operating Officer of Duoning Biotech

Sun Qing, President and Chief Operating Officer of Duoning Biologics, emphasized that for companies in the bioprocessing supply chain, product quality and innovation capability are key to gaining recognition in overseas markets. When facing the global market and international standards, there areFour Major Challenges: In-depth research and analysis of overseas business environments, laws, and regulations; gradual building of international recognition for Chinese products and brands; the long-term product leadership of global giants; and the integration of multi-party resources including channels, suppliers, and business development (BD).

In an interview, Sun Qing stated that Duoning Biotech will continue to pursue the localization of products and technologies across the entire spectrum of bioprocessing, while strategically focusing on the development of critical bottleneck technologies, new products, and novel processes. Guided by customer needs, the company is committed to delivering domestically produced alternatives that meet international standards. Leveraging its one-stop bioprocessing solutions, Duoning Biotech has adopted various strategies for global expansion, including establishing joint ventures or wholly-owned subsidiaries, engaging in channel partnerships, and pursuing mergers and acquisitions.

▲ Xie Hua, Senior Vice President of Duoning Biotech

During the conference, Xie Hua, Senior Vice President of Duoning Bio, stated that the bioprocessing supply chain is a critical component of biologics development and manufacturing, and must also support Chinese biologics companies in their global expansion.During the process of global expansion, formulating an appropriate strategy is crucial. The overarching approach should be tailored to local conditions: first, identify precise product positioning through market analysis, allowing products to lead the way, while simultaneously enhancing product performance and quality in accordance with local regulations and market demands. Subsequently, adopt a point-to-area strategy and leverage established products to drive new ones, using the promotion and application of mature products to stimulate growth across other product lines.

 ▲ Wu Zhaowei, Partner and Head of Healthcare Investment at Dingpei Group

Building a global ecosystem for China’s biopharmaceutical industry and encouraging biotech companies to proactively expand overseas are increasingly becoming a consensus among investors. Dingkang Bio’s major investor, Dingpei Group, also participated in the conference. Wu Zhaowei, Partner and Head of Healthcare Investments at Dingpei Group, stated that since entering the healthcare sector in 2017, approximately 70% of Dingpei Group’s healthcare investments have been allocated to the Greater China region, with 20% to 30% deployed globally, particularly in European and American markets.

In terms of investment logic, Dingpei places significant emphasis on a company’s overseas expansion capabilities when selecting targets:Identifying biopharmaceutical companies with the potential to enter major innovative drug markets in Europe and the United States within the next 10 to 15 years, including those capable of achieving “First-in-class” or “Best-in-class” status, and possessing competitive advantages in R&D costs, R&D efficiency, and market strategy.Furthermore, companies represented by CROs and upstream supply chains are also a key focus for Dingpei. Centered on pharmaceutical contract outsourcing service providers such as Dingkang Biologics, Dingpei Group will establish a pharmaceutical services ecosystem to help its portfolio companies connect with global resources, extending from services to technical exchanges and market expansion.

During the conference, Dingkang Biologics and Duoning Biology held a strategic cooperation signing ceremony. Based on this collaboration, both parties will jointly provide domestically produced products that meet international quality standards with controllable costs, along with rapidly responsive services, to local innovative pharmaceutical companies. This partnership aims to reduce costs and enhance efficiency in the biopharmaceutical industry, promote the upgrading of biomedical R&D and the industrial chain, and achieve domestic substitution of the supply chain.

WuXi Biologics is a globally leading CDMO company that pioneered the introduction of KUBio, the world’s first modular biopharmaceutical manufacturing facility, empowering the entire process of biologics development from cell line development to commercial manufacturing. Our innovation center in Shanghai focuses on efficient cell line development and advanced technology platforms, while our manufacturing facility in Wuhan brings extensive experience in successful multinational clinical trial applications and new drug approvals. Together, they enable WuXi Biologics to provide one-stop CMC solutions for global biopharmaceutical clients. At WuXi Biologics, we share a common goal: to enhance the accessibility of cutting-edge biopharmaceuticals to patients worldwide, fulfilling our commitment to human health.

Shanghai Duoning Biotechnology Co., Ltd. is a leading one-stop bioprocessing solutions provider in China, dedicated to delivering comprehensive solutions for biopharmaceutical products from research and development to commercial manufacturing, including reagents and consumables, instruments and equipment, and services. The company primarily operates two business lines: bioprocessing solutions and laboratory products and services. Through its one-stop bioprocessing ecosystem, it helps partners achieve efficient, stable, high-quality, and cost-controlled drug development and manufacturing processes.