The global pharmaceutical industry is increasingly becoming bipolar, with the US and China emerging as key centers, while Europe faces the risk of gradually falling behind. New research data and statements from industry leaders show that global competition for innovation, investment, and markets is rapidly intensifying.
China has made a dramatic leap in drug development over the past decade. While the country had approximately 800 early-stage development programs in 2015, by 2024 their number exceeded 6,000. In comparison, in the United States, this figure increased from approximately 5,000 to 7,000, but the country's share of the global pipeline declined from half to one-third. As early as the second quarter of 2025, China overtook the United States in the number of such programs for the first time.
Moreover, according to Citeline analysts, in 2025, China will become the global leader for the first time in the number of new drugs—molecules with fundamentally new mechanisms of action. For now, the US retains an advantage in the quality of innovation: the share of "first-in-class" drugs there reaches 37%, compared to 17% in China. However, the gap is gradually narrowing.
The growth of China's pharmaceutical industry is driven by several factors. Among them are a huge patient base, allowing for faster and more cost-effective clinical trials; regulatory reforms that have simplified drug launches; and the active return of scientists trained and experienced abroad. As a result, China is not only increasing its research and development but also strengthening its position in cutting-edge areas, including biotechnology and new treatments, particularly in the field of obesity.
Further evidence of China's strengthening position is the sharp increase in international deals. In 2025, the number of licensing agreements with Chinese pharmaceutical companies more than doubled, reaching 157 deals worth $135.7 billion. Major Western players are actively acquiring or licensing Chinese developments, demonstrating recognition of their scientific and commercial potential.
However, amid this rapid growth, geopolitical risks are also increasing. Experts point out that the industry's further development will depend on whether the US and China can avoid mutual restrictions on pharmaceuticals and maintain the stability of global supply chains.
Against this backdrop, Europe appears increasingly vulnerable. Roche CEO Thomas Schinecker warns that the region could fall even further behind the US and China due to excessive bureaucracy and regulatory oversight. He claims that "illogical" policies are holding back innovation and threatening one of the key sectors of the European economy.
The situation is exacerbated by the impact of US pricing policy. Following the introduction of the "most favored nation" treatment by the Donald Trump administration, which pegs US drug prices to lower foreign prices, sales of new drugs in Europe have fallen by approximately a third. This increases pressure on pharmaceutical companies and reduces incentives to introduce innovative products to the European market.
AstraZeneca CEO Pascal Soriot also warns that if current restrictions remain in place, Europe risks losing access to cutting-edge developments and effectively becoming a sales market rather than a hub of innovation.
Источник: Казахстанский Фармацевтический Вестник, pharmnews.kz
China has made a dramatic leap in drug development over the past decade. While the country had approximately 800 early-stage development programs in 2015, by 2024 their number exceeded 6,000. In comparison, in the United States, this figure increased from approximately 5,000 to 7,000, but the country's share of the global pipeline declined from half to one-third. As early as the second quarter of 2025, China overtook the United States in the number of such programs for the first time.
Moreover, according to Citeline analysts, in 2025, China will become the global leader for the first time in the number of new drugs—molecules with fundamentally new mechanisms of action. For now, the US retains an advantage in the quality of innovation: the share of "first-in-class" drugs there reaches 37%, compared to 17% in China. However, the gap is gradually narrowing.
The growth of China's pharmaceutical industry is driven by several factors. Among them are a huge patient base, allowing for faster and more cost-effective clinical trials; regulatory reforms that have simplified drug launches; and the active return of scientists trained and experienced abroad. As a result, China is not only increasing its research and development but also strengthening its position in cutting-edge areas, including biotechnology and new treatments, particularly in the field of obesity.
Further evidence of China's strengthening position is the sharp increase in international deals. In 2025, the number of licensing agreements with Chinese pharmaceutical companies more than doubled, reaching 157 deals worth $135.7 billion. Major Western players are actively acquiring or licensing Chinese developments, demonstrating recognition of their scientific and commercial potential.
However, amid this rapid growth, geopolitical risks are also increasing. Experts point out that the industry's further development will depend on whether the US and China can avoid mutual restrictions on pharmaceuticals and maintain the stability of global supply chains.
Against this backdrop, Europe appears increasingly vulnerable. Roche CEO Thomas Schinecker warns that the region could fall even further behind the US and China due to excessive bureaucracy and regulatory oversight. He claims that "illogical" policies are holding back innovation and threatening one of the key sectors of the European economy.
The situation is exacerbated by the impact of US pricing policy. Following the introduction of the "most favored nation" treatment by the Donald Trump administration, which pegs US drug prices to lower foreign prices, sales of new drugs in Europe have fallen by approximately a third. This increases pressure on pharmaceutical companies and reduces incentives to introduce innovative products to the European market.
AstraZeneca CEO Pascal Soriot also warns that if current restrictions remain in place, Europe risks losing access to cutting-edge developments and effectively becoming a sales market rather than a hub of innovation.
Источник: Казахстанский Фармацевтический Вестник, pharmnews.kz
