China's Roadmap for Pharmaceuticals May Support Sector Development

Dow Jones
Sep 21

0340 GMT - China's roadmap for pharmaceuticals that focus on innovation and globalization, appears to lay a good foundation for sector development, says Nomura's Jialin Zhang in a note. The sector's 15th Five-Year Plan targets research-and-development-to-sales ratio of listed pharmaceutical companies averaging higher than 10%, versus the 8% currently estimated by Nomura. It is also targeting first-in-class drugs to account for more than 25% of the global share, says Zhang. The sector's recent rapid development and improved global competitiveness likely spurred the focus on innovation and globalization, says Zhang. The analyst expects pharmaceutical companies and contract research, development, and manufacturing organizations to benefit from the Five-Year Plan. These include Innovent Biologics, WuXi AppTec and WuXi XDC, Zhang adds.

 

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