Multinational pharmaceutical companies collectively "increase their holdings" in China: a trust vote exceeding 100 billion yuan

Why are multinational pharmaceutical companies shifting their investment focus toward high-barrier technology fields?

21st Century Business Herald Reporter Ji Yuanyuan

After AstraZeneca announced plans to invest over 100 billion RMB (approximately $15 billion) in China by 2030 to expand its pharmaceutical manufacturing and R&D footprint, several other multinational pharmaceutical companies (MNCs) have also announced increased investments in the Chinese market.

Recently, the China Development High-Level Forum 2026 Annual Conference was bustling with a “MNC investment boom.” Novartis CEO Vasant Narasimhan announced at the “Healthy China 2030” and health industry development seminar that Novartis plans to invest over 3.3 billion RMB to initiate large-scale expansion projects in China. In the same week, AstraZeneca announced the establishment of two major manufacturing bases in Shanghai and Guangzhou, while Eli Lilly unveiled a plan to invest a total of $3 billion over the next decade.

This marks a strategic upgrade for MNCs in China from simply “selling medicines” to “innovating in China, manufacturing in China, and co-creating with China.” It’s not only a vote of confidence in the Chinese market but also a key part of their global supply chain and R&D restructuring.

During the China Development High-Level Forum 2026, representatives from participating multinational pharmaceutical companies unanimously stated that China holds a pivotal position in the global pharmaceutical market, has integrated into the global biopharmaceutical innovation ecosystem, and remains optimistic about the future of China’s pharmaceutical industry. They expressed willingness to increase investment, introduce more cutting-edge international products and technologies into China, and contribute to the “Healthy China” initiative.

“From the current investment directions, it’s clear that multinational pharmaceutical companies aim to seize the next-generation technological high ground. Their investment focus is on high-barrier, high-growth sectors such as cell and gene therapy (CGT), radioligand therapy (RLT), GLP-1 weight loss/metabolism treatments, and respiratory syncytial virus (RSV) vaccines, aiming to capture structural growth opportunities over the next decade,” said a securities industry analyst specializing in pharmaceuticals.

Hundreds of Billions in Investment

Investment by multinational pharmaceutical companies in China has become a major hotspot.

On the eve of the China Development High-Level Forum 2026, AstraZeneca announced plans to build a cell therapy production and supply base and an innovation center in Shanghai to develop end-to-end cell therapy capabilities. Almost simultaneously, its radiopharmaceutical production base in Guangzhou was revealed. The synergy between these two bases will significantly enhance AstraZeneca’s localized production capacity in new drugs and therapies.

Iskra Reic, AstraZeneca’s Global Executive Vice President and Head of International Business, stated: “Over the past thirty years, we have worked hand-in-hand with China to bring scientific breakthroughs to patients. Relying on the major investment announced in January this year of over 100 billion RMB, we are accelerating our cooperation and investment in China. By expanding our comprehensive end-to-end value chain capabilities, supporting innovation-driven development, and helping improve health outcomes for patients in China and globally.”

From initially importing products to now covering the entire chain of R&D, manufacturing, and supply, the trajectory of multinational pharma reflects a profound evolution of their role in China.

Novartis is also making strong strides. During the same forum, Novartis announced it would continue to increase investment in China, expanding its R&D, manufacturing, and operational footprint with an expected investment exceeding 3.3 billion RMB to support innovation and high-quality development in China’s biopharmaceutical industry. Meanwhile, Novartis is focusing on the high-quality development of RLT innovation ecosystems and has submitted policy recommendations related to regulatory governance and clinical application frameworks.

Novartis suggests that, on one hand, further improving the regulatory system covering the entire lifecycle of radiopharmaceuticals, standardizing management processes, establishing technical standards, and optimizing local production policies will promote safe, compliant, and sustainable innovation. On the other hand, it recommends optimizing hospital access and clinical application mechanisms, establishing green channels for patient admission, improving insurance and payment policies, strengthening nuclear medicine capabilities, and increasing patient accessibility to ensure these innovative therapies benefit more patients efficiently.

In recent years, China has been accelerating its emergence as a key source of global pharmaceutical innovation. To fully capitalize on this momentum, Novartis states it will continue to expand its R&D investment and actively explore external collaboration opportunities within China’s biopharmaceutical sector.

On one side, Novartis aims to expand clinical research in China, accelerate the development of innovative drugs for the Chinese market, and leverage China’s clinical research advantages to promote early-phase (I/II) clinical trials and accelerate global pipeline innovation. On the other side, it is increasing its investment in China’s business expansion, seeking early and deeper engagement with promising local innovative companies, and deepening collaborative innovation with Chinese partners.

Since 2024, Novartis has partnered with multiple Chinese innovative drug companies, with potential investments exceeding 80 billion RMB. These collaborations aim to bring promising innovations in cardiovascular, oncology, renal, and neurological diseases to more patients in need.

From Scientific Investment to System Optimization

Why are multinational pharmaceutical companies intensifying their investments now? The answer may lie in the words of senior executives.

Vasant Narasimhan, CEO of Novartis, said: “China is vital for Novartis’s long-term development and innovation. We will continue to introduce innovative medicines for Chinese patients and strive to be China’s most valuable and trusted healthcare partner.”

David A. Ricks, Chairman and CEO of Eli Lilly, stated: “Investment in talent should start with investment in health. However, the growing challenge of obesity is becoming a significant obstacle to achieving this goal. Obesity is not only a health issue but also a matter of national development, productivity, and future competitiveness. China’s ‘Weight Management Year’ initiative demonstrates the government’s forward-looking and systematic public health approach. By promoting earlier intervention and improving access to innovative treatments, we can work together to build a healthier, more vibrant future society. Lilly will continue to actively participate and promote this important process.”

Iskra Reic from AstraZeneca also noted that in recent years, the number of drugs developed in China has doubled, and last year, one-third of global licensing agreements came from Chinese companies. This clearly signals confidence in China’s biopharmaceutical innovation. “Therefore, AstraZeneca places great importance on building comprehensive manufacturing, R&D, and development capabilities in China to bring more cutting-edge innovations to patients.”

Severin Schwan, Chairman of the Roche Group, said: “The Chinese government has demonstrated remarkable foresight by continuously investing in foundational sciences, higher education, and top universities, cultivating a world-class research environment. Additionally, China’s regulatory system has been continuously improving, enhancing approval efficiency and strengthening intellectual property protections, which provides a robust institutional framework for high-quality industry development.”

In recent years, China’s reform of its drug review and approval system has accelerated, with faster approval of innovative medicines and more scientific updates to the national insurance catalog, creating a predictable policy environment for MNCs. China is not only a crucial market but also a key driver of global healthcare innovation.

A McKinsey report states that over the past decade, China’s pharmaceutical innovation ecosystem has undergone a profound transformation from catching up to running parallel. Since the 2015 regulatory reforms launched the innovation engine, and by 2025, China has fully aligned with global regulatory standards, contributing nearly one-third of the world’s innovative pipelines.

In terms of R&D output, China has achieved a qualitative leap. In 2015, China contributed only 4% of global innovative R&D pipelines and approvals; by 2025, these figures had risen to 30% and 20%, respectively. In the frontier field of next-generation therapies, China’s performance is especially prominent: as of September 2025, China contributed 34% of early-stage (I/II) clinical pipelines for next-generation therapies, leading in ADCs and bispecific/trispecific antibodies with 54% and 48% shares globally.

Based on this, McKinsey emphasizes that multinational companies need to redefine their roles within China’s innovation ecosystem. They should integrate China’s innovation into their global R&D strategies rather than viewing it solely as a sales market. This requires strengthening scientific and clinical capabilities locally, optimizing internal processes to match “China speed,” and avoiding missed opportunities due to inefficiency.

For investors, the key is to clarify their participation in the “serving the world from China” innovation logic. This involves formulating clear China strategies, establishing local footprints, supporting portfolio companies to leverage China’s R&D advantages, and even envisioning and investing in “hybrid” biotech companies that integrate global best capabilities.

Upgrading Localization Strategies

A close look at this wave of investment reveals a significant shift: multinational pharma is moving from “product entering China” to “innovation rooted in China,” with deeper and broader localization.

For example, AstraZeneca is not only building manufacturing bases but also has signed a university-level research cooperation agreement with Tsinghua University, establishing the “Tsinghua University (Intelligent Industry Research Institute) – AstraZeneca AI Drug Discovery Joint Research Center.” The collaboration will focus on disease mechanism research, multi-omics analysis and data science, biomarker discovery, translational medicine, clinical development strategies, and AI applications.

Similarly, Lilly’s Chairman and CEO, David Ricks, visited Tsinghua University, engaging with faculty on global health challenges, life sciences innovation, and public health policies. They discussed deeper cooperation in translating scientific achievements and cultivating talent.

Ricks emphasized that future breakthroughs in health will not only come from laboratory discoveries but also from the ability to “bring innovation into the real world”—accelerating research into clinical practice, reaching patients earlier, and making health systems more resilient and sustainable. Truly impactful innovations often cross disciplinary boundaries, requiring collaboration among medicine, engineering, data science, and social sciences. Only through more open, long-term cooperation connecting research, clinical validation, and industrialization can good ideas quickly become reality.

“We are in an era where life sciences, artificial intelligence, and automation are accelerating integration. Truly transformative innovations that improve patients’ lives need to connect scientific exploration, clinical validation, and industrialization into a smoother chain,” Ricks stressed. Lilly will continue to uphold long-term investment and open innovation principles, accelerating the translation of scientific progress into accessible health benefits.

Currently, China is at a critical stage of the “14th Five-Year Plan” and the rapid advancement of the Healthy China initiative. During the same forum, GSK submitted a report titled “Value Transformation under the Health Priority Strategy: Moving from Passive Treatment to Active Health, with Hepatitis B Functional Cure as a Breakthrough,” calling for: on one hand, promoting integrated medical and preventive reforms, technological innovation, and optimized healthcare service models to accelerate the construction of a modern, comprehensive prevention system covering all populations and life stages. This would shift health resources from passive treatment after disease onset to early risk identification, proactive screening, and long-term management, upgrading the system from disease prevention to overall health promotion; on the other hand, transforming health investment from a cost to a strategic, foundational investment focused on people’s health, population quality, and long-term social returns. This requires reshaping the value recognition system for innovative medicines from a cost-based to a multi-dimensional strategic value assessment.

GSK pointed out that breakthroughs in major disease areas could serve as key validation for new value investment concepts under the health priority strategy. Using innovative “functional cure” solutions for hepatitis B as a “breakthrough” and “model,” it could significantly reduce the risks of cirrhosis and liver cancer, lower high treatment costs across the patient’s lifespan, increase workforce productivity, reduce family burdens, and promote social equity. It could also drive improvements in diagnostic and treatment standards and industry innovation, providing a replicable case for the transformation of health system value orientation.

It’s clear that the role of multinational pharma is evolving from “serving China, for China” to “serving the world from China.” For the entire industry, this is not only a signal of confidence but also an opportunity of the era and a crucial step for China’s health industry to reach the global forefront.