'Cold Winter' is one of the most commonly used terms to describe the pharmaceutical industry at present. Due to the combined influence of multiple factors, the growth rate of pharmaceutical equipment enterprises, including many multinational enterprises, is slowing down in China. According to AstraZeneca's 2023 semi annual report, the performance of the China region in the first half of 2023 was $3.034 billion, an increase of 9%. China has become the slowest performance growth among AstraZeneca's different regions.
In response, at the 8th China Pharmaceutical Innovation and Investment Conference held recently, Wang Lei, AstraZeneca's Global Executive Vice President, International Business and China President, told 21st Century Economic Report reporters that although the performance growth in China is the slowest within AstraZeneca Group, the results are still relatively satisfactory because AstraZeneca is still absorbing the impact of centralized procurement, and issues such as medical insurance price cuts and contract renewals will bring pain. We need to digest these factors, exchange price for quantity, and benefit more patients. For us, what is most important in China is the market, manufacturing, and innovation
In Wang Lei's view, China is a large market, and there are still huge business opportunities in the context of accelerated aging, as well as many unmet health needs. This brings development opportunities for patient services, discipline construction, drug development, and so on. The cancer track is still the main layout of AstraZeneca, and it is highly optimistic that cell therapy can be used for solid tumor treatment. However, in the future pipeline layout, AstraZeneca will shift more towards non tumor fields, such as focusing on rare diseases and gene therapy, while also optimistic about big data and digital medical fields with huge opportunities
At the same time, Wang Lei also emphasized that the current is the best time for Chinese pharmaceutical companies to go global. "Not only multinational enterprises can 'walk in', but also local enterprises can 'walk out', and we will also respond to the call to actively participate in the work of jointly building the 'the Belt and Road'." Wang Lei further introduced that AstraZeneca can closely combine with Chinese scientists, bring results to the world, and through the "three carriages" of parks, funds and innovation centers, realize the combination of Chinese and Western under the leadership of research and development, For example, global research and development centers not only introduce drugs to China, but also collaborate with Chinese innovative enterprises from preclinical to phase I, II, and III clinical trials, achieving dual reporting and approval between China and the United States. Next, we will also collaborate on a large scale with Chinese enterprises to go overseas, starting with larger countries and regions such as Brazil, the Middle East, Indonesia, and Russia.
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According to Wang Lei, the current synchronized research and development rate of AstraZeneca's China R&D pipeline key projects with the global market has reached 100%, with early research and development projects accounting for 20%; And plans to introduce at least 15 innovative drugs within 5 years, with 80 approved new drugs and new indications, multiple involving rare and chronic diseases, aiming to benefit more Chinese patients.
The tumor track is the main layout of AstraZeneca, among which Wang Lei expressed great confidence in using cell therapy for solid tumor treatment. Based on feedback from scientists and preliminary data, although cell therapy has only been performed in a few cases, many of them have shown good results, and China will take the lead in the field of cell therapy for solid tumors
Regarding the current development of cell therapy, Wang Lei introduced that the first generation of cell therapy technology is mainly aimed at blood tumors, which are expensive and generally sold in the Chinese market, and have not entered medical insurance. But thereafter, cell therapy remains promising in the field of solid tumors. Wang Lei believes that cell therapy is currently in the stage of achieving results. For example, Nanjing Legend Biotech has been listed in the United States, with a market value of over $10 billion, and is collaborating with three giants: Novartis, Johnson&Johnson, and AstraZeneca.
Regarding AstraZeneca's pipeline layout approach, Wang Lei pointed out that innovative drugs in China are still on the rise. In the future pipeline layout, AstraZeneca will shift more towards non tumor areas, such as focusing on rare diseases and gene therapy. Regarding rare diseases, Wang Lei believes that due to China's large population base, the group of rare patients is not uncommon, and the greatest benefit of rare diseases lies in policies, which need to be re valued by society and the government.
Meanwhile, with the changes brought about by new generation information technologies such as 5G, big data, and artificial intelligence in medical service models in recent years, Wang Lei also emphasizes the value and potential of digital medical services. In the field of digital economy, China is one of the most developed countries in the world, and big data and digital healthcare will have huge opportunities. Through the Internet of Things and artificial intelligence, integrated diagnosis and treatment solutions will be established in fields such as tumors, The big data of the Chinese government and medical institutions is a treasure trove, with many places using large-scale population data and follow-up data, and many places having relatively fixed populations.
In addition, Wang Lei also emphasized that there is a greater possibility of China's "curve overtaking" in the field of medical devices, such as leading enterprises such as Mindray Medical. The application and approval of medical devices in China is easier than that of the FDA, so the emergence of 'Huawei' in the field of medical devices in China will be faster than in the pharmaceutical industry. At the same time, medical device companies are often smaller, so their overseas acquisition capabilities are stronger. Medical device companies go overseas earlier than pharmaceutical companies
In addition, Wang Lei also believes that China also has opportunities in the field of raw materials, among which few countries can surpass China in high-end intermediate raw materials. China has strong self-sufficiency in raw materials and intermediate capabilities. When there is a shortage of cancer drugs in the United States, only China can complete the supply, which is difficult to detect when there is no shortage. When there is a shortage, it will discover how much dependence there is
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As a century old multinational pharmaceutical company, Wang Lei stated that AstraZeneca is committed to promoting medical practices and innovation ecology in China. It is also a Chinese Western enterprise that is rooted in China and can promote Chinese innovation to the world. "AstraZeneca can not only launch scientists to manufacture drugs in European and American countries, but also closely integrate with Chinese scientists to bring the results to the world. Through the combination of Chinese and Western, we can do a good job in the markets of developed countries and developing countries at the same time. While China has achieved a leading position, we also hope to take the lead in the countries jointly built along the the Belt and Road."
In terms of innovative drugs going global, Wang Lei believes that it is not easy for Chinese companies to go global, and currently he has not seen the "Huawei" in the Chinese pharmaceutical industry. In addition, Hong Kong's approval for listing only recognizes products approved by the European Union, the United States, or mainland China, and many Chinese innovative pharmaceutical companies have not yet established their presence in Hong Kong.
Wang Lei believes that based on the company's own situation, the export of innovative drugs can be divided into several directions. Firstly, those with good drug quality and capital support can directly enter the European and American markets for competition; Secondly, enterprises with good drug quality but temporarily lacking capital support can go to developing countries; In addition, companies focusing on generic drugs, if they can compete with India for high-quality and affordable products, not only do developing countries need it, but also developed countries need it; In addition, if companies only focus on the domestic market and have extremely high drug quality, there is also an opportunity.
Previously, AstraZeneca collaborated with domestic pharmaceutical companies such as Green Leaf Group, Kangtai Biotech, and Aide Biotech in the field of going overseas. Wang Lei introduced that AstraZeneca cooperated with Kangtai Biology to export Kangtai Biological COVID-19 vaccine of AstraZeneca technology to Indonesia through negotiations with the Indonesian side.
AstraZeneca has also collaborated with Green Leaf Group in the field of traditional Chinese medicine. Wang Lei introduced that both sides are promoting the listing of Xuezhikang in countries and regions with a large number of Chinese people, such as Uzbekistan, Singapore, Hong Kong, Taiwan, etc. At the same time, there is also a need to expand the market, with both sides going to Brazil and the Middle East for layout and negotiating technical cooperation with the local area. Local countries attach great importance to the localization of drugs, but there are certain difficulties in localizing traditional Chinese medicine. Some fermentation processes are difficult, but we still do our best to help Green Leaf Group promote the export of traditional Chinese medicine products such as Xuezhikang
In the cooperation with Aide Biology, Wang Lei pointed out that developing countries have not developed enough in the field of accompanying diagnosis. Many developing countries have high accompanying diagnosis costs or need to wait for a month to send to European and American countries. Some tumors are progressing rapidly, and patients sometimes cannot wait. Aide Biology has partially realized how to make accompanying diagnosis technology settle in the local area. We have jointly developed and established technology centers in Japan, Europe and America, the Middle East, Brazil, and other regions with Ed Bio. The proportion of overseas business is increasing, and in the near future, overseas business may become Ed's main business, helping developing countries in diagnosis
The above cooperation has given us some confidence in our preliminary work. Next, we will collaborate on a large scale with Chinese enterprises to go overseas. It is easier to first layout in Brazil, the Middle East, Indonesia, Russia, and other places, and the market is large. If the market is small, it is meaningless. At the same time, Hong Kong is close, so it is also easy to layout first. "Regarding the future cooperation plan for going overseas, Wang Lei said.
Regarding the difficulties and challenges faced in the current environment of innovative drugs going global, Wang Lei believes that AstraZeneca has good stock performance and is listed overseas. It is less affected by the Chinese capital market, and seeking cooperation in the capital winter has become easier. For a large pharmaceutical company, there are currently opportunities everywhere, and AstraZeneca is actively financing and collaborating. AstraZeneca scientists have also been constantly traveling to China after the epidemic. Currently, 5-10 scientists are seeking cooperation across China and maintain a proactive attitude