Regulatory support from the Chinese government and growing interest from the investment world have contributed to China’s booming biotech industry, which has continuously been luring talent away from multinational drug companies.
In recent years, many former Chinese executives from the likes of Pfizer, AstraZeneca, GlaxoSmithKline, Novartis and Sanofi either jumped to domestic biopharmas or struck out on their own. The drivers behind their decisions: higher salary and more room for growth in an entrepreneurial environment, according to the Financial Times.
China has been relying heavily on generics, and that kind of a market left small room for innovation, leaving only a handful of multinationals as the main sources of innovative drugs in the country. Therefore, when the biotech industry does come alive, it’s only natural that it will turn to these global companies for talent.
“The value proposition of local biotechs is clear: they provide an entrepreneurial environment, there is the possibility of future public listing and exciting opportunities in terms of building a business,” Franck Le Deu, a senior partner at McKinsey in Hong Kong, was quoted by FT.
Xiaobin Wu, Ph.D., formerly Pfizer China’s general manager who recently jumped to BeiGene, told FT that at Chinese biotech startups, “the working dynamic is very different and the decision making is fast.”
In 2017, the Chinese biopharma industry received $11.7 billion in venture capital investment, according to ChinaBio. Those handsome financial injections not only went to R&D activities, but also offer a larger pool for executive pay. According to an executive with recruiting firm Hays interviewed by FT, Chinese startups offered 20% higher base salaries than global pharmas.
Here is a nonexhaustive summary of some recent examples of Chinese MNC-to-biotech shifts:
By Angus Liu
Source: Fierce Pharma
Hybrid closed-loop systems rely on an algorithm to first analyze real-time blood sugar readings from a continuous glucose monitor, then use the results to adjust an insulin pump’s output as needed throughout the day. In this case, the algorithm was developed by Diabeloop, the CGM is a Dexcom G6 sensor, and the insulin pump comes from ViCentra.
Boehringer Ingelheim has acquired bacterial cancer therapy company T3 Pharmaceuticals in a deal that could be worth up to 450 million Swiss francs ($508 million). The addition of Allschwil, Switzerland-based T3 will “significantly expand” the German drugmaker’s immuno-oncology pipeline and aligns with some of the company’s existing R&D programs.
EuroAPI has completed the acquisition of BianoGMP, a contract development and manufacturing organization (CDMO) specializing in oligonucleotides. The acquisition, announced in August, further differentiates its value proposition to support a broader client base across the whole oligonucleotide development continuum, from research to commercialization, EuroAPI said.