According to industry definition, the biopharmaceutical industry refers to the sum of economic entities that apply the research results of biotechnology such as genetic engineering, cell engineering, enzyme engineering, fermentation engineering, and protein engineering to the pharmaceutical industry, manufacture circulating drugs in the market, and produce them on a large scale.

The development direction of China's biopharmaceutical industry mainly includes four categories: biological therapeutic drugs (such as tumor therapy), biological preventive drugs (such as vaccines), biological diagnostic drugs (such as genetic diagnostic reagents), and other biological preparations (blood products, etc.), while defining biopharmaceuticals as not including small molecule chemical drugs and traditional Chinese medicine.

● 1. Industrial chain ●

The upstream of biopharmaceuticals includes the production of active pharmaceutical ingredients and the research and development of biopharmaceuticals, among which research and development is a very important link. The birth of biopharmaceuticals cannot be separated from research and development and experimentation. In addition, upstream should also include talent cultivation, technical exchange, and so on.

The midstream mainly involves the production and sales of biopharmaceuticals, as well as the production and sales of biopharmaceutical equipment.

The downstream of image biopharmaceuticals is the end of its industrial chain and the endpoint of biopharmaceutical circulation. At present, the terminal channels of biopharmaceuticals mainly include hospitals, clinics, pharmacies, etc. E-commerce channels are a future development trend.

● 2. Development status ●

(1) Rapid increase in the scale of the biopharmaceutical market

In recent years, biopharmaceuticals have shone in the global pharmaceutical market due to their high pharmacological activity, strong specificity, and good therapeutic effects. From the perspective of drug types, among the top 100 drugs in 2021, there are a total of 45 small molecule drugs, accounting for 36% of sales revenue; There are a total of 55 monoclonal antibodies, dual antibodies, ADC (antibody conjugated drugs), recombinant proteins, and vaccine based macromolecular drugs, with sales revenue accounting for 64%.

China's biopharmaceutical enterprises started later than developed countries, and there is still a significant gap between them in terms of global market share and product competitiveness. However, China's biopharmaceutical industry is developing rapidly. From 2016 to 2020, the size of China's biopharmaceutical market increased from 183.6 billion yuan to 345.7 billion yuan, with a compound growth rate of 17.14%, which is much higher than the global level.

● 2. Development status ●

(1) Rapid increase in the scale of the biopharmaceutical market

In recent years, biopharmaceuticals have shone in the global pharmaceutical market due to their high pharmacological activity, strong specificity, and good therapeutic effects. From the perspective of drug types, among the top 100 drugs in 2021, there are a total of 45 small molecule drugs, accounting for 36% of sales revenue; There are a total of 55 monoclonal antibodies, dual antibodies, ADC (antibody conjugated drugs), recombinant proteins, and vaccine based macromolecular drugs, with sales revenue accounting for 64%.

China's biopharmaceutical enterprises started later than developed countries, and there is still a significant gap between them in terms of global market share and product competitiveness. However, China's biopharmaceutical industry is developing rapidly. From 2016 to 2020, the size of China's biopharmaceutical market increased from 183.6 billion yuan to 345.7 billion yuan, with a compound growth rate of 17.14%, which is much higher than the global level.

● 3. Trend Insight ●

(1) Technological breakthroughs will drive a new round of industrial transformation

The lack of independent innovation capability in the Chinese biopharmaceutical industry hinders the process of technological industrialization. Improving the international competitiveness of the Chinese biopharmaceutical industry, strengthening technological research and development, and enhancing the industry's independent innovation capability are the key to the future development of the industry.

In recent years, many pharmaceutical companies have increased investment in innovative drugs, with a continuously increasing proportion of research and development. They have made breakthroughs in internationally leading fields such as monoclonal antibodies, dual antibodies, and PD-1.

(2) The competition among domestic enterprises is intensifying, and the competition among top pharmaceutical companies is gradually penetrating globally

The strong layout of multinational corporations in the domestic pharmaceutical market has also intensified competition among domestic biopharmaceutical companies. In 2018, due to the introduction of new listing regulations on the Hong Kong Stock Exchange, more biopharmaceutical companies went public in Hong Kong.

(3) Expanding financing channels and capital supporting the sustainable development of the industry

Since 2015, national departments have issued a series of policies related to pharmaceutical research and development. Against the backdrop of policy dividends, the domestic biopharmaceutical industry has begun to increase both in terms of investment volume and amount. Since 2015, the number and amount of domestic biopharmaceutical investment events have continued to increase. The investment and financing in the domestic biopharmaceutical field experienced significant growth in 2020, driven by the epidemic. The total financing amount in 2020 reached 88.375 billion yuan, an increase of 107.6% compared to 2019. The number of financing events from January to August 2022 reached 1026, with an investment and financing amount of 89.174 billion yuan.