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    Home > Medical News > Latest Medical News > Domestic pharmaceutical companies are accelerating their pace of innovation, and R&D expenses are expanding

    Domestic pharmaceutical companies are accelerating their pace of innovation, and R&D expenses are expanding

    • Last Update: 2022-05-21
    • Source: Internet
    • Author: User
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     Data shows that China's innovative drug industry is still in a stage of rapid growth.
    From 2014 to 2018, its market size increased from 56.
    95 billion yuan to 109.
    09 billion yuan, with a compound annual growth rate of 17.
    6%
    .
    It is predicted that it will continue to grow at a compound annual growth rate of 18.
    5%, and the market size may reach 254.
    9 billion yuan by 2023
    .
    At the same time as the rapid growth of innovative drugs, domestic innovative drug companies have also accelerated the pace of innovation
    .
    From the perspective of R&D expenses, the average growth rate of Biotech R&D expenses is nearly 36%, and the innovation of domestic pharmaceutical companies has entered an accelerated stage
    .
    Based on the R&D expenses of 25 18A Hong Kong-listed Biotechs, 21 of them will increase their R&D expenses in 2021
    .
    In addition, the data also shows that in 2021, the research and development expenses of 34 Hong Kong-listed pharmaceutical companies will exceed 500 million yuan, of which 18 companies will invest more than 1 billion yuan in research and development
    .
    Take BeiGene as an example.
    Over the years, BeiGene has always given the outside world the impression of "burning money" and spent a lot of money on research and development
    .
    Its 2021 annual report shows that research and development expenses are 1.
    46 billion US dollars, or about 9.
    5 billion yuan
    .
    BeiGene's annual report also shows that the company currently conducts more than 100 clinical trials in 45 countries around the world, with a total global enrollment of more than 14,500 people
    .
    Among them, there are 38 large-scale Phase 3 clinical trials
    .
    The cost of head-to-head trials is more complicated.
    In addition to the trial costs, the control drug must be purchased, which is naturally a lot of overhead
    .
    Another example is China Biopharmaceuticals.
    Judging from the past financial statements, the R&D investment and proportion of China Biopharmaceuticals have increased year by year in the past five years, showing that the group has accelerated its transformation into an innovative enterprise
    .
    Among them, in 2021, the company's total R&D investment will increase by 34.
    5% year-on-year to 3.
    82 billion yuan (accounting for 14.
    2% of revenue)
    .
    Among them, the R&D investment of innovative drugs and biological drugs accounted for more than 70%, the investment amount increased by 64.
    7% year-on-year, and the R&D investment in the anti-tumor field reached 75%, and the investment amount increased by 71.
    2% year-on-year
    .
    In terms of innovation and development, Sino Biopharma is actively deploying innovative drug research and development.
    According to relevant databases, Sino Biopharma currently has 34 clinical trials in Phase 2 and 3, and 49 trials in Phase 1 are actively advancing.
    , the coverage area is mainly oncology, which means that in the future, China Biopharmaceuticals will continue to make efforts in the field of tumor innovative drugs
    .
    From the perspective of the progress of research products, tumor products under development are progressing rapidly and will soon enter the harvest period
    .
    In addition, in 2021, Fosun Pharma will invest a total of 4.
    975 billion yuan in research and development, accounting for 12.
    75% of operating income; of which, research and development expenses will be 3.
    834 billion yuan, accounting for 9.
    83% of operating income
    .
    Zai Lab is also actively increasing its R&D investment.
    The annual R&D expenditure in 2021 will be US$573 million, a year-on-year increase of 157%
    .
    The research and development investment of Clover Bio also increased by 7 times, reaching 1.
    826 billion yuan
    .
    The R&D investment of CanSino Bio, Lepu Bio and Kintor all increased by more than 100%
    .
    According to the industry, as a high-investment and high-risk industry, the biopharmaceutical industry has very high requirements for R&D investment
    .
    Whether or not to achieve revenue depends to a large extent on the research and development of the company's products
    .
    Therefore, the R&D investment of innovative pharmaceutical companies will remain high for some time to come
    .
    For example, Junshi Bio said that the company will continue to invest a lot of research and development expenses, and the future profitability will depend on the progress of the drug under development and the sales of the drug after the launch
    .
    However, some people pointed out that it is precisely because of the continuous increase in R&D investment of innovative pharmaceutical companies that the company's operating income cannot cover the huge R&D expenses and other expenses, and many pharmaceutical companies are still unable to achieve profitability in 2021
    .
    Ruzejing Pharmaceutical’s loss in 2021 will increase year-on-year, the company said, mainly because its new drugs have been on the market for a short period of time, and the annual R&D investment has increased year-on-year
    .
    Zai Lab's net loss attributable to the parent company in 2021 is US$704 million, a year-on-year increase of 161.
    98%.
    As for the reason for the loss, Zai Lab stated that it was mainly due to the related expenses of new business development activities.

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