By ZH Sailing Research | March 2026
China is aiming to strengthen investment and financing mechanisms for its biopharmaceutical sector to support innovation and accelerate commercialization, according to Ding Lieming, chairman of Betta Pharmaceuticals Co Ltd and member of the Chinese People’s Political Consultative Conference.
Speaking at the ongoing two sessions, Ding said that while China has made significant strides in pharmaceutical innovation, financial support must better match the long development cycles and high risks of drug development.
Rising global presence
China’s pharmaceutical innovation has advanced rapidly:
During the 14th Five-Year Plan (2021–25), 230 innovative drugs were approved in China, including 76 in 2025 alone.
Chinese drugmakers’ outbound licensing deals exceeded $130 billion, reflecting growing global influence.
“These achievements show that China has become a major source of global pharmaceutical innovation,” Ding said.
However, developing a new medicine is costly and time-consuming, typically taking around 10 years, requiring roughly $1 billion in investment, and yielding a success rate of less than 10 percent.
Financing solutions to accelerate innovation
To address these challenges, Ding proposed several measures:
Expand industry investment funds
Leading pharmaceutical companies act as “chain leaders,” building collaborative ecosystems to connect research breakthroughs with commercial development.
Increase government-private capital cooperation
Support innovative drug development and accelerate the commercialization of new technologies.
Broaden listing channels for biotech firms
Allow non-profitable companies backed by industry funds to access capital markets, improving financing flexibility.
Encourage mergers and acquisitions
Simplified review processes and faster approval timelines can speed up the commercialization of promising research projects.
Develop S funds (secondary private equity funds)
Provide liquidity for investors, enabling them to sell stakes in venture capital or private equity portfolios while bringing in new capital.
Ding emphasized that state-owned capital could play a leading role in establishing such funds, creating a win-win for investors, innovators, and funded companies.
Key Data
Innovative drugs approved (2021–2025): 230
Approved in 2025: 76
Outbound licensing deals value: $130+ billion
Typical new drug development cycle: ~10 years
Estimated R&D investment per new drug: ~$1 billion
Success rate for new drugs: <10%
Source: Betta Pharmaceuticals, CPPCC, official reports
Market Implications
1. Stronger financing supports global competitiveness
Enhanced investment mechanisms could help Chinese pharmaceutical firms bring more innovations to international markets.
2. Improved commercialization pipeline
Industry funds, S funds, and broader listing channels could reduce financing bottlenecks, shortening the time from lab to market.
3. Policy and private capital alignment
Government and private-sector collaboration is critical to sustain long-term innovation in high-risk drug development.
What Investors Should Watch
Growth of industry investment funds supporting biotech innovation
Trends in M&A activity and listing opportunities for biotech startups
Expansion of Chinese pharmaceutical innovation in global markets
Development of financing structures tailored to long-cycle, high-risk R&D projects