New Report from Clarivate and Healthcare Executive Explores Mainland China's Biopharma Revolution and Increasing Global Influence

Rhea-AI Summary

Clarivate (NYSE:CLVT) and Healthcare Executive have released a report titled 'A Decade of Innovation, A Decade to Come,' analyzing Mainland China's transformation into a global biopharma powerhouse. The report highlights China's advancement to become one of the top three countries for initial drug launches, with its R&D expenditure growing 3.5 times over the past decade. Key developments include regulatory reforms, increased investment, and improved patient access to therapies. The National Reimbursement Drug List negotiations have reduced drug costs by 50-60%, while China's share of global licensing deals has increased from 6.5% to nearly 9% since 2015.

Positive

• China has become one of the top three countries globally for initial drug launches
• R&D expenditure growth outpaces UK and US rates, increasing 3.5x over the past decade
• National Reimbursement Drug List negotiations reduced drug costs by 50-60%
• Share of global licensing and service deals increased from 6.5% to 9% since 2015
• Country leads in research publication and patent filing in life sciences

Negative

• None.

Insights

Market Research Analyst

The report highlights China's significant transformation in the global biopharma landscape, with several key metrics indicating substantial market growth. The increase in China's share of global licensing deals from 6.5% to 9% since 2015, coupled with a 3.5x growth in R&D expenditure, signals robust market expansion. The implementation of the NRDL with 50-60% cost reductions through price negotiations has created a more competitive market environment.

For Clarivate investors, this represents a strategic positioning in the growing Chinese biopharma market. The company's comprehensive data services and analytics tools are becoming increasingly valuable as China's biopharma sector expands. The partnership with the China Pharmaceutical Enterprises Association strengthens Clarivate's market position and potential revenue streams from this rapidly growing market.

Pharmaceutical Industry Analyst

The regulatory and policy reforms in China's biopharma sector present significant opportunities for global stakeholders. The Marketing Authorization Holder system and streamlined approval processes have fundamentally altered the market dynamics. The country's emergence among the top three nations for initial drug launches demonstrates the effectiveness of these reforms.

The systematic price negotiations through NRDL, while reducing costs by 50-60%, have created a more sustainable market model balancing innovation with accessibility. This transformation positions China as a important market for both domestic and international pharmaceutical companies, potentially driving increased demand for Clarivate's intelligence services.

New report analyses Mainland China's transformation into a global biopharma powerhouse, with key insights for international stakeholders

LONDON, Nov. 18, 2024 /PRNewswire/ -- Clarivate Plc (NYSE:CLVT) a leading global provider of transformative intelligence, in partnership with Healthcare Executive, published by the China Pharmaceutical Enterprises Association, today announced the release of a new report, A Decade of Innovation, A Decade to Come.

Over the past decade, Mainland China's biopharmaceutical sector has rapidly advanced to become a global leader in innovation, ranking among the top three for initial drug launches. Driven by reforms, increased investment, and progressive policies, the industry has reduced approval timelines, raised regulatory standards, and improved patient access to advanced therapies. Insights from the Institute for Scientific Information™ show that China's Gross Expenditure on Research and Development has grown 3.5 times over the past decade, outpacing growth rates in the UK and the U.S.¹ These developments, combined with an evolving healthcare reimbursement system, have enabled both domestic and multinational companies to bring new therapies to market, benefiting millions of patients.

Henry Levy, President, Life Sciences & Healthcare, Clarivate, said: "Mainland China's ascent in the biopharma sector reflects the power of sustained investment and strategic reform. This report not only highlights the impressive achievements of the past decade but also underlines the far-reaching potential for Chinese biopharma companies to drive global medical innovation and enhance patient outcomes worldwide."

Tan Yong, Vice President of China Pharmaceutical Enterprises Association and Publisher of Healthcare Executive, noted: "The pharmaceutical industry is poised for significant and transformative changes in the upcoming decade, driven by heightened competition. Rapid innovation and intense competition have reshaped market dynamics, leading to more focused and sustainable growth. The report offers the industry a glimpse of how Chinese pharmaceutical companies can prioritize innovation and international expansion in the next decade."

Alice Zeng, Senior Solution Consultant, Life Sciences & Healthcare, Clarivate, added: "This report is an invaluable resource for global industry stakeholders. For pharma companies worldwide, it provides a timely understanding of Mainland China's biopharma landscape, covering the opportunities for international collaboration and the potential for accelerated market entry."

The report highlights Mainland China's regulatory advancements, rapid drug launch growth, and expanding domestic R&D role. Key updates include the National Reimbursement Drug List (NRDL), where systematic price negotiations have cut costs by 50-60%, improving access to innovative drugs. Additionally, Mainland China's share of global licensing and service deals has grown from 6.5% to nearly 9% since 2015, and the country now leads in publishing research and filing patents in key life sciences, underscoring its rising influence on the global industry.

Key insights in A Decade of Innovation, A Decade to Come, include:

• Impactful policy reforms: How regulatory initiatives such as the Marketing Authorization Holder (MAH) system and priority review programs have streamlined approvals and bolstered R&D.
• Healthcare accessibility and innovation: An examination of Mainland China's healthcare reforms, including the expansion of the NRDL and commercial health insurance, increasing access to cutting-edge therapies.
• Investment and R&D growth: Analysis of Mainland China's record-breaking R&D investment, driving advancements in oncology, anti-infectives, and emerging therapeutic areas.
• Global Integration and market opportunities: Insights into the rise of Mainland China's biopharma sector as a global player, including the increase in multinational collaborations and first-to-market launches.

With Mainland China's share of first-time global drug launches growing, and as new therapeutic areas advance, A Decade of Innovation, A Decade to Come provides timely, in-depth insights for international investors, multinational pharmaceutical companies, and healthcare stakeholders who seek to understand Mainland China's role in shaping the future of the biopharma landscape.

The A Decade of Innovation, A Decade to Come report draws on comprehensive data and tools trusted by the global life sciences community, including Cortellis Competitive Intelligence, Cortellis Regulatory Intelligence™, Disease Landscape & Forecast, Cortellis Deals Intelligence, Cortellis Clinical Trials Intelligence™, Cortellis Product Intelligence™, Real World Data and Analytics, Access and reimbursement payer studies, BioWorld™, Web of Science™ and Derwent Innovation™ among others. Compiled by Clarivate analysts using data gathered prior to August 31, 2024, this report reflects Clarivate's commitment to supporting drug, device, and medical technology lifecycles. By combining patient journey data, therapeutic insights, and AI-driven analytics, Clarivate enables evidence-based decisions that advance human health.

To learn more about the Clarivate report, A Decade of Innovation, A Decade to Come, visit here.

About Healthcare Executive
With media as the outpost, conference as the platform, live video broadcasting as the tool, and expert pharmaceutical industry observers and recorders as the living force, Healthcare Executive (E药经理人) brings the top consensus of entrepreneurs, scientists, and investors in the pharmaceutical industry together on the one hand, and on the other hand gathers multi-dimensional and multi-level resources from the whole industry chain. We are dedicated to providing in-depth professional communication opportunities and influential solutions for the whole industry chain in their whole life cycle. In this regard, we make connections with client requirements upstream and downstream and make preparations for the overseas strategy in their international programs.

About Clarivate
Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com

Media Contact 
Catherine Daniel
Director, External Communications, Life Sciences & Healthcare
Clarivate
newsroom@clarivate.com

¹ Source: Global Research Report: China's research landscape, ISI, Clarivate

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SOURCE Clarivate Plc

FAQ

What is the growth rate of China's R&D expenditure according to Clarivate (CLVT)?

According to Clarivate's report, China's Gross Expenditure on Research and Development has grown 3.5 times over the past decade, surpassing growth rates in the UK and U.S.

How much has the National Reimbursement Drug List reduced drug costs in China as reported by Clarivate (CLVT)?

According to the Clarivate report, systematic price negotiations through the National Reimbursement Drug List have reduced drug costs by 50-60%.

What is China's current share of global licensing and service deals according to Clarivate (CLVT)?

According to Clarivate's report, China's share of global licensing and service deals has grown from 6.5% to nearly 9% since 2015.