China Evolves from Imitation to Innovation

Since the late 1970s, China's pharmaceutical industry has maintained a double-digit growth rate on a year-by-year basis. Major economic indicators reached the best level in 2003 with annual production output amounting to $46.87 billion, an increase of 19.86% compared with 2002. Of this, $5.33 billion was accounted for by new product production, a 22.91% rise over the previous fiscal year. According to BCG Analysis 2002, China is expected to become the fifth largest pharmaceutical market in the world by 2010. As a result of rapid economic development, China's overall competitiveness is improving in most industrial sectors. Population and healthcare have become a focal point that receives tremendous attention from the whole society. The pharmaceutical industry is experiencing its historical transformation from imitation to innovation, a nationwide drug innovation system has been preliminarily established, and drug development capability continues to expand. R&D infrastructure There are presently more than 5,000 research and development (R&D) institutions in China, but only a handful of them are able to compete internationally in certain areas. The nationwide drug discovery and development system consists of specialized research institutes, major universities, biotechnology companies, and R&D divisions of large pharmaceutical enterprises. National and some provincial institutes of materia medica with different research focuses and technical capabilities are responsible for various key state projects and thus, play an essential role in both basic and applied research on drug innovation. A number of laboratories or schools of pharmacy affiliated to major universities are also involved in several national drug discovery initiatives while also being principal education and training bases of pharmaceutical scientists and technicians. In recent years, mid- and small-size biotechnology companies are developing at a rapid pace. There are more than 1,000 such entities nationwide at present, and more than 30% of them are privately owned. Special governmental funds are available to promote this type of entrepreneurship. During the past several years, some Chinese pharmaceutical companies began to establish R&D infrastructures largely due to internal growth needs, but their primary focus is directed toward improving existing technologies or developing generic version of new drugs. Nonetheless, the innovation-oriented R&D flagship of China's pharmaceutical industry with a global vision is in its formation and consequent impact should not be underestimated. For example, Shanghai Pharmaceutical Group Co. Ltd., the largest conglomerate in this industrial sector of China, formed its Central Research Institute last year with technical backing of the prestigious Shanghai Institute of Materia Medica, Chinese Academy of Sciences. Initial funding includes more than $6 million in seed money for high-risk investment in novel small-molecule drug leads, new formulation or dosage form, and efficacy-defined traditional Chinese medicine (TCM). For more information please click "here":[ http://www.bioperform.com/article/CA606967.html].

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