China's Biotech Sector Narrows US Gap to 2-3 Years

Gary Rieschel, the founding managing partner of Qiming Venture Partners, highlighted that a decade ago, China lagged behind the United States by 20 years in the development of innovative drugs. Today, that gap has narrowed to just two to three years, marking a significant acceleration in China's biotechnology sector. Rieschel noted that China's biotechnology ecosystem is becoming increasingly robust, and a pivotal moment, akin to the "DeepSeek moment," could occur with the development of the dual-specificity antibody AK112 by Kanghong Biotech, which has shown efficacy twice that of Keytruda.

Rieschel emphasized that while China's biotechnology sector has made remarkable strides, it still faces challenges in global distribution and clinical trial capabilities. He believes that the current licensing model is a necessary step for Chinese biotech companies to gain experience and eventually achieve global competitiveness. Rieschel also pointed out that the biotechnology sector has fewer choke points compared to other industries, making it difficult to impede China's progress through targeted restrictions.

Rieschel discussed several factors driving China's biotechnology revolution. The return of overseas-trained talent and the establishment of diagnostic and reagent businesses have laid a strong foundation. Companies like Tigermed have enhanced China's clinical trial capabilities, enabling high-quality data reviews and analyses that meet international standards. Additionally, China's vast market potential and the global demand for new drugs have fueled innovation. Rieschel also highlighted the importance of rapid iteration and improvement in drug development, as seen in the success of AK112, which leverages China's strong protein engineering capabilities.

Rieschel acknowledged that while the licensing model has been crucial for Chinese biotech companies, it also poses risks. He believes that over time, Chinese companies will transition from being suppliers to global leaders in biotechnology. Rieschel also addressed concerns about data integrity and safety standards, noting that China's clinical trial data is now reliable and meets international standards. He emphasized the importance of trust and cooperation in the global biotechnology ecosystem.

Looking ahead, Rieschel advised global pharmaceutical companies to engage more deeply with China's biotechnology sector. He suggested that companies should consider strategic investments and partnerships to leverage China's innovative capabilities. Rieschel also highlighted the need for global companies to adapt to China's unique market dynamics and regulatory environment. He believes that China's biotechnology sector will continue to grow and innovate, driven by its strong ecosystem and market demand.