Big Pharma faces looming patent cliff, losing exclusivity and pricing power to generic and biosimilar competition. US drug makers also navigate political challenges, including the Biosecure Act. Morgan Stanley estimates $171 billion in revenue at risk by 2030. Pfizer and Bristol Myers Squibb CEOs warn of impending revenue loss. Chinese biotechs see opportunity as big pharma seeks new assets. Chinese policymakers prioritize biomanufacturing for tech self-reliance. Chinese biotech firms reshape US biopharma sector, offering cheaper and quicker licensing deals. Global drug makers shift focus to earlier-stage assets as timelines tighten. The fear of losing exclusivity looms large in the pharmaceutical industry. Generics and biosimilars can cause rapid and severe price drops for blockbuster drugs, with US facing steepest declines post-patent expiration. Merck’s Keytruda and BMS’s Eliquis are at risk, prompting industry urgency to rebuild pipelines. Chinese biotechs offer cost advantages and faster timelines, attracting US collaborations despite political tensions.
Chinese companies account for a growing share of out-licensing deals, offering lower upfront payments and quicker clinical validation. Geopolitical concerns are brushed aside as commercial logic prevails in partnerships with US firms. US Congress targets Chinese biotechs as national security risks, but impact on industry expected to be limited.
Despite US efforts to reshore pharmaceutical supply chains, industry hesitates to decouple from Chinese manufacturers due to regulatory challenges and cost implications. Chinese biotech firms are positioned to deliver new molecules with lower costs and faster execution, challenging traditional industry dynamics and reshaping the global pharmaceutical landscape. Chinese biotech companies like WuXi AppTec and WuXi Biologics are making a significant impact in the US with labs and manufacturing sites totaling 344,000 sq ft. These companies are poised to meet the growing demand for new molecules in oncology, autoimmune diseases, and cardiovascular medicine. Big Pharma is turning to Chinese biotech for cost-effective solutions as patents expire. The Washington may try to change the landscape, but the clock is ticking for new innovations.
Read more at Yahoo Finance: will China biotech throw Big Pharma a lifeline?