China emerging as powerhouse for innovative drug development

China is rapidly emerging as a powerhouse for innovative drug development, a significant shift in the global pharmaceutical landscape from a demand market and a site for clinical trials to a source of groundbreaking scientific research and innovation. The number of therapies developed in China has doubled in recent years, and approximately one-third of the global licensing deals last year involved Chinese biopharmaceutical enterprises. This shows China’s growing role in the global drug research and development (R&D) ecosystem, said Sharon Barr, Executive Vice President of Biopharmaceuticals R&D at AstraZeneca, in an interview during the 2025 AstraZeneca R&D China Science Day in Shanghai on September 22.

“Since 2023, the company has signed 15 licensing deals with 14 Chinese biotech firms, marking a historic high for us,” said Barr. “This is how we start at the beginning of our pipeline to create transformative new medicines. We look at promising opportunities, which also fit into our portfolio, and that will help us achieve the bold ambition of introducing 20 breakthrough innovative medicines globally by 2030. We are thrilled to integrate into China’s world-class, dynamic life sciences ecosystem,” Barr said, adding that the company’s investment of USD2.5 billion announced early this year, included establishing AstraZeneca’s sixth global strategic R&D center in Beijing, forming a dual-engine with the existing strategic R&D center in Shanghai.

For example, the company signed an agreement with Eccogene in 2023 to jointly work on an oral GLP-1 receptor agonist developed by the Shanghai-based small-sized technology enterprise, and ultimately bring the medicine to the broader patient population around the world. The drug candidate is currently in global phase-2 clinical trials, with phase-1 trials underway in China.

China’s appeal extends beyond its large patient population and extensive data resources. The country boasts leading academic institutions and a robust research network, said the company. He Jing, Vice President and Director of R&D China at AstraZeneca, said that the company collaborates closely with Chinese research institutions and universities, including the Chinese University of Hong Kong, the Chinese Academy of Sciences’ Shanghai Institute of Materia Medica and Peking University, to advance foundational scientific explorations. AstraZeneca’s China R&D pipeline has been fully aligned with its global projects, with over 160 ongoing clinical trials involving nearly 500 hospitals nationwide and 23% featuring early-stage projects. The company’s China R&D department currently leads nearly 20 global clinical trials in partnership with top Chinese experts and hospitals, the China Daily reports.