Innovative Drug R&D in China

Summary

As Chinese pharmaceutical industry is rising rapidly, a growing number of Chinese drug companies pay attention to investing in research of innovative medicines. Their attempts are encouraged by government who promises to provide financial support and improve industry infrastructure. Their programs are infused with increasing numbers of returnees. Their progress is also accelerated by the growing abundance of venture capitals.

Their efforts have now started yielding fruitful results. There have been a variety of drug candidates in various development stages in the product pipelines of these Chinese drug companies for a broad range of therapeutic targets. More significantly, driven by a number of positive factors, this sector of the Chinese pharmaceutical industry has gained an extraordinary growth momentum and will thus continue to develop in the future.

However, to a large extent, it is still a myth to many companies/organizations outside China about the R&D activities in these Chinese drug companies and the progress of their programs.

The report ""Innovative Drug R&D in China"" is designed to reveal the real state of the innovative drug R&D in China including their research scope and scale, their current focus and capability in innovative drug R&D and the development stage of their product pipelines.

Based on a broad and in-depth investigation, the report provides a clear insight into the current situation of the innovative drug R&D in China. It also provides the in-depth analysis of the future growth potential and drivers of this Chinese industry.

The report is a must-read book to global pharmaceutical and biotech companies that are seeking research collaborations with Chinese companies, venture capital investors interested in investment opportunities in Chinese pharmaceutical and biotech industries, market research/consultancy companies seeking the information of the development situation of China's drug R&D, and even the government agencies of those countries that are interested in learning the current and future development of China's biotech industry.

Key Findings of the Report

• Largely due to the short history of its modern pharmaceutical industry, innovative drug R&D in China is just beginning, but it has truly taken off. The sustained fast growth of China's economy has made the innovative drug research affordable to the country.
• At present there are three groups of companies playing key roles in this Chinese industry. The first group contains those top tier pharma companies. However, within this group of companies only a small fraction of them are conducting truly innovative drug R&D. The second group is composed of those young, R&D-oriented biotech companies. The majority of them are founded by returnees who received higher education in the West and further gained direct experience during their prolonged stay in the Western pharma or biotech industry. This is currently the main force of China's innovative drug R&D. The third group includes those top tier state-owned research institutions including those research universities that have life science schools/departments.
• Interestingly, a small number of China-based outsourcing service providers (mainly those top tier CROs) are also conducting innovative drug R&D internally. On the other hand, the number of state-owned research institutes focusing on the innovative drug R&D is actually small. Our study revealed that it was only a perception that the top tier research institutions are the main force of the innovative drug R&D in China. In fact, the majority of these research institutions are primarily focusing on the basic type of medical research.
• The growing funding sources that now become more readily available to Chinese companies are the key driving force for their innovative drug R&D programs. Combined together, these companies support their R&D programs through four major funding sources: venture capitals, public offering (or IPO), government grants and self-funded (through either selling products or providing outsourcing services). The availability of government grants from both central and local provincial or municipal government is increasing. Opportunities of venture capital investment are also rapidly growing. Meanwhile, the exit channels for venture capital investment also gradually become mature.
• The current strengths of Chinese companies in research of innovative medicines almost equally reside in both small molecule and macro compound-based drugs. Their research approaches for small molecule drugs primarily focus on the structural modifications of natural products that are derived from the medicinal herbs of traditional Chinese medicines (TCMs). Their research methodologies for novel biologic drugs are, however, more diverse and advanced, including all types of biologically derived proteins.
• Nearly 65% of drug candidates are in early development stages (either preclinical or phase I clinical trials), an indication that the innovative drug R&D in China is just beginning. However, a decent number of novel medicines such as TCMs, gene therapy drugs and a variety of vaccines have proceeded to the advanced development stages. Some of them have been approved for marketing.
• Of all these Chinese drug R&D companies, about 45% of them either have programs for development of anti-cancer agents or entirely focus on the novel cancer drug development as their sole therapeutic area. Cancer drugs based on a variety of treatment mechanisms are also the largest group of drug candidates in their product pipelines. The situation is well in line with the current development state of the global drug R&D.
• The formation of a positive environment of innovative drug R&D in China also fosters the growing research activities in other pharmaceutical research areas such as the development of new drug delivery technologies, novel molecular diagnostic and imaging tools, biomarkers and frontier research such as stem cell and RNA interference. New technologies and products in these areas also start emerging.
• Largely attracted by the growth potential of China's pharmaceutical market and the advantage of a large talent pool coupled with the still low labor cost, growing numbers of pharma and biotech companies from around the world are conducting innovative drug R&D in China or collaborating with local Chinese drug companies.
• However, the R&D collaborations between the major Chinese pharma companies and the R&D-oriented Chinese biotech companies are very rare. Unlike in the Western pharma industry, those major Chinese pharma companies do not rely on the emerging Chinese biotech companies to fill out their product pipelines. In fact, many of them do not have an established product pipeline filled with innovative medicines yet.
• Because of the short history in innovative drug R&D, there are a number of limitations associated with this Chinese industry primarily in such areas as the research skills and experience.
• On the other hand, driven by a number of factors, this sector of the Chinese pharma industry has gained an extraordinary growth momentum. The main growth driver is the determination of Chinese government to convert the Chinese pharmaceutical industry from a generic drug-focused industry to an innovation-driven drug development powerhouse.

Key Features of the Report

• The report is the first time ever in the history of pharmaceutical industry that describes in depth the most mysterious part of the Chinese pharmaceutical industry.
• The report depicted a whole picture of the innovative drug R&D in China at present. It revealed the real development state of this Chinese industry.
• The report also conducted in-depth analysis on the future development of this Chinese industry including all drivers and the roles each of them will play in steering this Chinese industry.
• The report contains forty (40) Chinese drug companies that have the most advanced programs in innovative drug research. It analyzed in depth the research focuses and capabilities and the product pipelines for each of these companies.
• The report also contains 110 drug candidates in various stages of preclinical and/or clinical development in the product pipelines of these Chinese companies. It described in detail the features of their molecular structure, the mechanisms of their action and the current stages of their development.
• The report is composed of four chapters (a total of 230 pages) and supported with 53 tables, 18 figures and 12 case studies. Each chapter focuses on one area and provides detailed and in-depth description and analysis.
• The report also contains a detailed company profile for each of these forty companies studied in the report.
• The report is currently the sole source available on the market to all types of companies and organizations that are interested in learning the development state of China's innovative drug R&D.

Your Questions Are Answered

• The report provides complete and detail answers to a variety of questions such as:
• What is the current state of China's R&D on innovative medicines? How many companies are conducting innovative drug R&D in China?
• Who are the major players in China's innovative drug R&D? How are their current R&D capabilities?
• What is the main driver encouraging Chinese companies to conduct research on innovative medicines?
• What are the major funding sources for innovative drug R&D programs in Chinese companies? To what extent are the Western VCs involved?
• What are the feasible exit strategies in China? Did they work? Which one is most popular at present?
• What is the development state of the product pipelines of these Chinese drug companies?
• What are the most active therapeutic areas currently pursued by Chinese companies? How do the drug candidates distribute in development stages of each therapeutic area?
• What are the strengths and weakness of Chinese companies in innovative drug R&D?
• What are the current state and capability of Chinese companies in the frontier pharmaceutical research areas?
• How about the research collaborations between domestic Chinese companies and between Chinese companies and experienced international pharma or biotech companies?
• What is the future prospect of China's innovative drug R&D? What are the main drivers of its future development?
• Are there any Western companies that are interested in licensing drug candidates developed by Chinese companies?

Contents

• Scope of the Report
• About Author
• Executive Summary
• Current state of innovative drug R&D in China
• Chinese companies conducting innovative drug R&D
• Innovative drugs in development pipelines of Chinese drug companies
• Future prospect of innovative drug R&D in China
• Chapter 1. Current State of Innovative Drug R&D in China
• Summary
  • 1.1 Introduction
  • 1.2 Innovative drug R&D in China: Possible?!
    • 1.2.1 The lost history of innovative drug R&D in China
    • 1.2.2 R&D activities on innovative medicines do exist in China now
    • 1.2.3 Examples of Western pharma companies licensing drug candidates from China
  • 1.3 Current state of innovative drug R&D in China's pharma-related industries
    • 1.3.1 Innovative drug R&D in Chinese pharma and biotech industries
    • 1.3.2 Innovative drug R&D in state-owned research institutions
  • 1.4 Current state of R&D on traditional Chinese medicines (TCM)
  • 1.5 Current capability of China's innovative drug R&D
    • 1.5.1 China's general capability in pharmaceutical research
    • 1.5.2 Capability of Chinese companies in innovative drug R&D
    • 1.5.3 Capability of Chinese companies in development of new drug delivery technologies
    • 1.5.4 Key strengths of Chinese drug companies in innovative drug R&D
    • 1.5.5 Current situation of patent applications in China for innovative drugs
  • 1.6 Current funding sources for innovative drug R&D in China
    • 1.6.1 Initial public offering (IPO)
    • 1.6.2 Self-funded
    • 1.6.3 Venture capitals
    • 1.6.4 Government grants
  • 1.7 Importance of China's innovative drug R&D to the world pharma industry
    • 1.7.1 Western pharma companies desperately need novel drugs to fill out their product pipelines
    • 1.7.2 Novel drug candidates discovered and developed by Chinese companies could become alternative resources to Western companies
    • 1.7.3 Financial crisis has enhanced the importance of China's innovative drug R&D to Western companies
• Chapter 2. Chinese Companies Conducting Innovative Drug R&D
• Summary
  • 2.1 Introduction
  • 2.2 Searching and selection criteria
  • 2.3 Analysis of Chinese companies conducting innovative drug R&D
    • 2.3.1 Business nature of the companies conducting innovative drug R&D in China
    • 2.3.2 Experience of Chinese companies in innovative drug R&D
    • 2.3.3 Analysis of financial support of all China-based innovative drug R&D companies
    • 2.3.4 Analysis of physical locations of innovative drug R&D companies in China
  • 2.4 Analysis of product pipelines of all Chinese companies conducting innovative drug R&D
    • 2.4.1 Listing of product pipelines of Chinese drug companies
    • 2.4.2 Analysis of product pipelines of Chinese drug companies
      • 1. Distributions of drug candidates in various development stages in each group of companies
      • 2. Distributions of innovative drug R&D companies focusing on small molecule drugs and macro compound-based drugs
      • 3. Which companies own the most drug candidates
      • 4. Analysis of innovative drug R&D companies according to therapeutic areas
• Chapter 3. Innovative Drugs in Development Pipelines of Chinese Drug Companies
• Summary
  • 3.1 Introduction
  • 3.2 Analysis of development stages of drug candidates in the product pipelines of Chinese drug companies
    • 3.2.1 Distributions of development stages of all drug candidates
    • 3.2.2 Detailed listing of all drug candidates in each development stage
  • 3.3 Analysis of molecular structures of all drug candidates in development pipelines
    • 3.3.1 Distributions of all drug candidates of different types of molecular structure
    • 3.3.2 Detailed listing of drug candidates according to their molecular structure
  • 3.4 Analysis of drug candidates in each therapeutic area
    • 3.4.1 Analysis of drug candidates according to their therapeutic functions
    • 3.4.2 Analysis of drug candidates in each therapeutic area according to their development stages
    • 3.4.3 Detailed listing of drug candidates in each therapeutic area
• Chapter 4. Future Prospect of Innovative Drug R&D in China
• Summary
  • 4.1 Introduction
  • 4.2 Drivers of future development of innovative drug R&D in China
    • 4.2.1 Attraction of China as one of the world largest pharmaceutical markets
      • 1. Future development potentials of Chinese pharmaceutical market
      • 2. Future market growth potentials of some key therapeutic areas
        • a. Market growth potential of anticancer drugs in China
        • b. Market growth potential of various vaccines in China
      • 3. Key future growth drivers of Chinese pharmaceutical market
        • a. On-going nationwide healthcare reform
        • b. Westernization of living style has changed disease patterns
        • c. Growing middle class population that are able to afford high-end medicines
        • d. Rapid urbanization makes more Chinese able to afford high-end medicines
    • 4.2.2 Government encouragement and support for innovative drug R&D
    • 4.2.3 Increasing sources and availabilities of R&D funding
      • 1. Various funding sources from government agencies
      • 2. Increasing opportunities of venture capital (VC) investment
    • 4.2.4 Gradual establishment of exit channels for investment
    • 4.2.5 Advantages of conducting innovative drug R&D in China
      • 1. Rich natural products
      • 2. A large, treatment-nave patient pool
      • 3. Abundant animal species
      • 4. Large, well-trained workforce
    • 4.2.6 Entrance of multinational companies
    • 4.2.7 Collaborations between local Chinese drug R&D companies/organizations and between Chinese companies and experienced international drug companies
    • 4.2.8 Summary of the future growth drivers of innovative drug R&D in China and analysis of the roles each of them will play
  • 4.3 Latest development in other frontier pharmaceutical research in China
    • 4.3.1 Development of novel molecular diagnostic tools and biomarkers
    • 4.3.2 Stem cell research
  • 4.4 Existing issues in China's innovative drug R&D
  • 4.5 The future perspective of China's innovative drug R&D
• List of Tables
  • Table 1. Representative state-owned research institutes in life science
  • Table 2. Representative state key labs in life science
  • Table 3. Representative top research universities having life science schools/colleges
  • Table 4. Products under development in Chinese biotech companies using new drug delivery/formulation techniques
  • Table 5. List of representative companies/research organizations in China conducting innovative drug R&D
  • Table 6. Classifications and distributions of China-based innovative drug R&D companies
  • Table 7. Years of innovative drug R&D experience of Chinese companies
  • Table 8. Classifications of founders of Chinese companies conducting innovative drug R&D
  • Table 9. Innovative drug R&D companies founded by returnees or Chinese scholars
  • Table 10. Analysis of funding sources of China-based drug R&D companies
  • Table 11. Analysis of locations of China-based innovative drug R&D companies
  • Table 12. Major Chinese pharma companies conducting innovative drug R&D and their product pipelines
  • Table 13. Chinese biotech companies conducting innovative drug R&D and their product pipelines
  • Table 14. State-owned research institutes conducting innovative drug R&D and their product pipelines
  • Table 15. Chinese CROs conducting innovative drug R&D and their product pipelines
  • Table 16. Analysis of drug product pipelines in each group of innovative drug R&D companies
  • Table 17. Analysis of the numbers of the innovative drug R&D companies in each drug development stage
  • Table 18. Analysis of molecular structure of drug candidates in each group of Chinese companies conducting innovative drug R&D
  • Table 19. Top 10 companies having most innovative drug candidates
  • Table 20. Analysis and distributions of innovative drug R&D companies according to therapeutic areas
  • Table 21. China-based Innovative drug R&D companies having cancer drugs in various development stages
  • Table 22. China-based innovative drug R&D companies having anti-viral drugs in various development stages
  • Table 23. Analysis of the numbers of drug candidates in each development stage
  • Table 24. Drug candidates in preclinical development
  • Table 25. Drug candidates in phase I development
  • Table 26. Drug candidates in phase II (IIa/IIb) development
  • Table 27. Drug candidates in phase III development
  • Table 28. Drugs approved or waiting for approval
  • Table 29. Classifications and distributions of drug candidates according to their molecular structures
  • Table 30. Distributions of small molecule drugs in various development stages
  • Table 31. Distributions of macro compound-based drugs in various development stages
  • Table 32. List of small molecule drugs in various development stages
  • Table 33. List of macro compound-based drugs in various development stages
  • Table 34. List of vaccines in development for different purposes
  • Table 35. List of new TCMs in development
  • Table 36. Distributions of drug candidates in each therapeutic area
  • Table 37. Summary of the mechanisms of action of all cancer drugs in development
  • Table 38. Numbers of drugs in various development stages of each therapeutic area
  • Table 39. Drug candidates in development for cancer
  • Table 40. Drug candidates in development for anti-viral diseases
  • Table 41. Drug candidates in development for cardiovascular diseases
  • Table 42. Anti-biotic drugs in development
  • Table 43. Drug candidates in development for metabolic diseases
  • Table 44. Drug candidates in development for inflammatory diseases
  • Table 45. Drug candidates in development for CNS diseases
  • Table 46. Drug candidates in development for COPD
  • Table 47. Drug candidates in development for all other diseases
  • Table 48. Current Chinese pharmaceutical market and its future growth forecasts
  • Table 49. Representative venture capital investors in China
  • Table 50. Examples of recent investment activities of Western VCs in China
  • Table 51. Analysis of the roles of growth drivers in determining the future development of China's innovative drug R&D
  • Table 52. Diagnostic products under development
  • Table 53. Stem cell research in China List of Figures
  • Figure 1. Distributions of different types of innovative drug R&D companies in China
  • Figure 2. Distributions of innovative drug R&D companies in term of the years of their research experience
  • Figure 3. Graphic display of funding sources of China-based innovative drug R&D companies
  • Figure 4. Location distributions of innovative drug R&D companies in China
  • Figure 5. Distributions of the number of drug candidates and their development stages in each group of companies
  • Figure 6. Distributions of companies in each development stage of drug R&D
  • Figure 7. Comparison of the numbers between small molecule drugs and macro compound drugs in each group of innovative drug R&D companies
  • Figure 8. Company distributions in each therapeutic area
  • Figure 9. Distributions of development stages of all drug candidates
  • Figure 10. Comparison of the numbers between small molecule drugs and macro compound-based drugs in development pipelines
  • Figure 11. Distributions of small molecule drugs in various development stages
  • Figure 12. Distributions of macro compound-based drugs in various development stages
  • Figure 13. Numbers of drug candidates in each therapeutic area
  • Figure 14. Distributions of drug product pipelines in each therapeutic area
  • Figure 15. Development of Chinese pharmaceutical market: Past, present and future
  • Figure 16. Current market value and forecasted future growth of cancer drug market in China
  • Figure 17. Current market value and forecasted future growth of vaccine market in China
  • Figure 18. Major Western pharma and biotech companies conducting innovative drug R&D in China List of Case Studies Case study 1. Chinese biotech company focusing on development of new drug delivery technologies Case study 2. Example of application for Chinese patent by international drug companies Case study 3. Example of patent application by Chinese company for new formulation of existing drugs Case study 4. GSK looking at the Chinese vaccine market Case study 5. Latest announcement of more R&D funding by Beijing Municipal Government Case study 6. Latest announcement by Shanghai Municipal Government for availability of new R&D funding Case study 7. The interest of major Western pharma companies in natural products derived from medicinal herbs of TCMs Case study 8. Collaboration between Chinese drug company and research institution on innovative drug R&D Case study 9. R&D collaboration between a Chinese pharma company and a US biotech company Case study 10. Chinese research institute collaborating with a US-based non-profit organization on development of novel anti-TB agents Case study 11. Chinese pharma company establishing R&D centers in the Western countries Case study 12. Chinese company developing diagnostic tools for detection of early stage bladder cancer Company Profile Company profiles of 40 Chinese companies conducting innovative drug R&D Appendix Appendix I. Research methodology Appendix II. About JZMed