China’s pharmaceutical innovation is entering a new global phase, driven by faster R&D, lower costs, and rising international recognition.
China’s pharmaceutical innovation is entering a new stage, with faster development, broader pipelines and growing global recognition, industry experts said.
Wu Chun, managing partner of BCG Greater China, said in an interview with China News Service (CNS) during the annual China Development Forum (CDF) 2026 that China has moved beyond being a participant in global pharmaceutical innovation.
Faster, More Efficient R&D
Over the past decade, China has improved its drug development system, with gains in speed, scale and cost control.
Since 2021, the number of new molecular entities (NMEs) entering clinical trials in China each year has exceeded that of the United States, Wu said. At the same time, research pipelines have expanded beyond oncology into areas such as respiratory diseases, immunology, dermatology, gastrointestinal and cardiovascular conditions.
China also shows cost and efficiency advantages across the development process. Early-stage drug discovery costs are estimated at 20–30 per cent of those in the U.S., while preclinical development costs are about half as much. In clinical trials, large patient pools and a concentrated hospital system support faster enrollment, making China an increasingly important part of global studies.
Rising Global Recognition
Chinese pharmaceutical companies are also becoming more active in global markets.
More firms are conducting head-to-head Phase III trials against established global drugs, reflecting greater confidence in their products and research capabilities. Meanwhile, China-originated assets accounted for 31 per cent of global business development deal flow in 2025, up from 17 per cent in 2020, according to BCG.
Approvals of innovative drugs from China are also increasing in major markets, including the FDA and the EMA, indicating growing international acceptance.
China Remains a Key Market and Innovation Hub
Wu said future growth will depend on improving research systems, strengthening original innovation, and better using digital tools such as artificial intelligence. Expanding into new disease areas and building globally recognised clinical and data systems will also be key.
Denis Depoux, global managing director at Roland Berger, said the healthcare sector could see China’s next breakthrough. He noted strong demand in medical and elderly care services, as well as the advantages of China’s integrated supply chains and fast execution.
Depoux said China remains a key market and innovation hub for multinational companies. To stay competitive, he added, firms need to deepen their presence in China and adapt to local demand.
Other executives from multinational companies also highlighted China’s growing role in global healthcare innovation.
Medtronic Chairman and CEO Geoff Martha said China is becoming an important source of medical technology innovation and a strategic hub, and added that the company will continue to invest in the market.
Written by Ronnie Yu.
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