Domestic pharmaceutical and biotech companies are rapidly expanding their presence in the Chinese market. Rather than merely exporting products to China, they are engaging in a "two-way strategy" by importing candidate substances from Chinese firms that have quickly developed their drug development capabilities.
According to the Korea Health Industry Development Institute, the size of China's pharmaceutical market is estimated to reach approximately $264.1 billion (about 353 trillion won) by 2024, with projections of growing to around $345.4 billion (462 trillion won) by 2028.
China's capacity for new drug development is also advancing swiftly, positioning the country as a source for technology transfer beyond just a sales market. The Ministry of Industry and Information Technology of China reported that out of 38 innovative drugs launched in the first half of this year, 31 were developed domestically. As of the end of last year, China had a total of 4,751 innovative drug candidates in its pipeline, accounting for about one-third of the global total.
Major export contracts from domestic pharmaceutical companies are on the rise. Boryung recently signed a supply contract with China’s Yifan Pharmaceutical for the cancer drug Taxotere (generic name docetaxel). The contract spans seven years and is valued at $277.14 million (approximately 383.7 billion won), marking the largest supply agreement the company has ever secured. Initially, products will be supplied through existing production systems, with plans to gradually transition production to its facility in Yesan, South Chungcheong Province after technology transfer and regulatory approval. Industry experts believe this contract secures long-term demand in a key market, enhancing Boryung's global business stability.
Chong Kun Dang Bio is also accelerating its entry into China. The company has submitted a Biologics License Application (BLA) for its self-developed botulinum toxin product, CU-20101, to the National Medical Products Administration (NMPA) of China, aiming for a launch in the second half of next year. Previously, in 2022, the company entered into an exclusive licensing agreement with Hong Kong-listed biotech firm Quthea Therapeutics for the Greater China region (including China, Hong Kong, Macau, and Taiwan). Upon receiving approval, Chong Kun Dang Bio will receive a milestone payment of $1.5 million (about 2 billion won) along with 5% royalties on local net sales.
The trend of importing Chinese drug candidates into Korea is also noteworthy. HK Inno.N is conducting Phase 3 clinical trials in Korea for the obesity treatment candidate Ecnoglutide, developed by China's Saiwind Bioscience. Similarly, JW Pharmaceutical has applied for a Phase 3 trial plan for the obesity drug candidate Bofanglutide, sourced from China's Gan & Lee. Both companies aim to initiate clinical trials within the year.
Both firms are strategizing to connect the clinical successes of glucagon-like peptide-1 (GLP-1) candidates in China to domestic approvals and commercialization.
Chinese biotech companies are rapidly securing late-stage candidates based on their low-cost and fast development capabilities. An industry insider noted, "Licensing in Chinese products is becoming an attractive option as it can reduce development time and costs compared to developing new drugs from scratch. However, delays in approval schedules by Chinese regulatory authorities or the escalation of U.S.-China tensions into the pharmaceutical sector could disrupt business plans."
* This article has been translated by AI.
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