Chinese Over Reliant on Western Pharma? Likely but they have No Choice

In a recent commentary, Zhou Liyun in PharmaCube emphasized that China's path toward becoming a global leader in innovative pharmaceuticals cannot rely solely on selling "green seedlings"—a term used to describe early-stage drug assets developed by Chinese pharmaceutical companies and subsequently sold to foreign firms. Zhou argues that while this approach has played a role in boosting capital flows and fostering innovation ecosystems, it also reveals underlying weaknesses in China's pharmaceutical sector, such as the lack of mature, homegrown drug development pipelines and limited commercialization capabilities.

Zhou highlights several critical issues facing the industry. First, he critiques the overreliance on foreign markets for the monetization of Chinese innovations, which hinders the development of robust domestic markets for novel drugs. This reliance creates a dynamic where Chinese companies prioritize short-term gains over long-term strategic goals, leaving them vulnerable to external market fluctuations. Second, Zhou calls for stronger governmental and institutional support to ensure Chinese companies can independently develop, market, and distribute their innovative therapies rather than ceding control to foreign entities.