PharmTech Explained: China's Biotech Rise Signals New Risks for US Manufacturers

The latest episode of PharmTech Explained examines how China has moved from a low-cost manufacturing base to a genuine competitor for pharmaceutical innovation, and what that shift means for US drug developers and manufacturers. The episode opens with Pfizer CEO Albert Bourla's March 2026 warning that US dominance in biotech is being challenged by China,¹ then traces the data behind that claim: 8 of the 10 research institutions on the 2025 Nature Index are now China-based,² and a 2026 survey of more than 100 senior US industry and academic leaders found China now leads the US on two critical measures, including CDMO infrastructure.³

The dealing making side of the industry illustrates this dominance, a notable example being AstraZeneca's nine deals with Chinese developers, including an $18.5 billion collaboration with CSPC Pharmaceuticals.⁴ John Stanford, executive director, Incubate Coalition, says,⁵ "The reality is that Chinese innovation is bringing new molecules and modalities to market, and global players are taking note, and they want access to that innovation.”

Saharsh Davuluri, CEO & Managing Director, Neuland Laboratories, tells PharmTech about a large concern for CDMOs outside of China, “when you have big pharma in licensing some of these new drugs from Chinese innovators, who determines the manufacturing, plans? Is it the Chinese company that is licensing out to the innovators, or is it the big pharma company that actually licenses it?”

This episode is not about which country is winning or losing, but who is bearing the highest risk as regulatory policy is being rewritten. A CDMO weighing capacity investment, a sponsor building a regulatory strategy around China-sourced data, or a licensing team structuring deal terms all face the same unresolved question: whose responsibility is it when authority over an asset splits between the Chinese originator and the Western licensee? With Congress signaling tighter scrutiny of foreign trial data and deal volume showing no sign of slowing, the industry is being asked to adapt to a landscape that hasn't yet settled.

References

1. Agarwal K. Pfizer CEO warns China is fast catching up in biotech innovation. Association of American Universities. April 10, 2026. https://www.aau.edu/newsroom/pfizer-ceo-warns-china-fast-catching-biotech
2. Nature Index. 2025 research leaders. https://www.nature.com/nature-index/research-leaders/2025/
3. Cure. US biomedical innovation leadership at risk: new data show China rapidly closing gap as clinical trials and manufacturing migrate abroad. EurekAlert!. Press Release. June 22, 2026. https://www.eurekalert.org/news-releases/1132861
4. AstraZeneca. AstraZeneca enhances its weight management portfolio through strategic collaboration with CSPC Pharmaceutical Group. Press Release. March 2, 2026. https://www.astrazeneca.com/media-centre/press-releases/2026/astrazeneca-agrees-obesity-and-t2d-deal-with-cspc.html
5. Hollan M, Stanford J. Why Chinese biotech licensing deals became attractive to US investors. Pharmaceutical Executive. July 29, 2026. https://www.pharmexec.com/view/chinese-biotech-licensing-deals-became-attractive-us-investors

Video References

House committee report signals limits on foreign clinical data. Hogan Lovells. May 5, 2026. https://www.hoganlovells.com/en/publications/house-committee-report-signals-limits-on-foreign-clinical-data.

FDA BIMO guidance and inspection process: streamlining clinical inspections. GSAP Global. Published December 22, 2024. Accessed June 30, 2026. https://gsapglobal.com/fda-bimo-guidance-inspections/.gsapglobal.

Processes and Practices Applicable to Bioresearch Monitoring Inspections. The FDA Group Insider. January 8, 2026. https://insider.thefdagroup.com/p/processes-and-practices-applicable-to-bimo-inspections.

McCaughan M. First-in-China trials may be “counterproductive” for sponsors, US FDA CBER official says. Friends of Cancer Research. Published 2026. https://friendsofcancerresearch.org/news/pink-sheet-first-in-china-trials-may-be-counterproductive-for-sponsors-us-fda-cber-official-says/