context: China’s pharma industry saw impressive growth over the last decade, in part due to regulatory reforms and centralised procurement policies. Innovation remains a bottleneck due to a lack of sustained funding channels through basic health insurance. Basic research is still weak and firms are reluctant to go beyond conventional research areas.
The 5-year plan for the pharmaceutical industry, alongside the vision for 2035, was issued by MIIT (Ministry of Industry and IT), NDRC (National Development and Reform Commission) and other agencies on 30 Jan 2022. The plan outlines major targeted areas for R&D, while supply chain security, manufacturing capacity and international expansion are stressed as is habitual. The medical insurance regulator for the first time took part in the document's planning, notes Dongguan Securities, hinting at a more coherent funding environment for drug developers. Quantitative and qualitative targets include
- revenue and profit to grow by 8 percent annually on average
- R&D investment to grow by 10 percent annually on average
- improvement in supply chain security, manufacturing capacity and international competitiveness
Recognising achievements in innovation throughout the 13th 5-year plan period ending 2020, the ministries highlight challenges in global industry consolidation, low innovation capacity and manufacturing quality assurance. Major tasks include
- innovation and product commercialisation
- R&D in chemical medicine, antibody drugs, vaccines, recombinant protein drugs and medical equipment
- drug production technology development
- review policy for drug launches
- industry-academia cooperation
- supply chain stability and competitiveness
- API production
- stressing supply chain strengths and weaknesses
- cultivating quality market players
- optimising regional layout
- emergency supply capacity
- solid foundation for emergency response, including pharmaceutical resources
- emergency vaccine production and R&D capacity
- manufacturing capacity
- continuous improvement in quality and safety
- digitisation
- green and low-carbon
- managing security risk controls
- international connections
- attracting global pharmaceutical innovation to China, including R&D centres
- better access to international markets among domestic pharmaceutical enterprises
- more generic drug registrations in developed countries
- contributing to international drug use regulations