by HUANG Hua

Shanghai has the potential to become a global source of biopharma innovation, but further progress will require advances in original research, translational capability, regulatory coordination and payment systems, said Yan Shuizhong, COO of global R&D at Zai Lab.

Speaking at the "Shanghai 2035: Answers for the Future" roundtable's biopharma session, Yan said Zhangjiang's "China Pharma Valley" has built strong industry recognition over time, supported by visible government backing. But moving from an established cluster to a global innovation source will require more than scale, he said.

Much of China's recent progress — whether through early-stage licensing or project-level expansion — has been supported by accumulated engineering and development capabilities. To sustain that momentum, Yan said, companies will need to strengthen original innovation.

He added that the practice of licensing early-stage assets reflects both company-level constraints and broader industry conditions. Smaller biotech firms may lack the resources for late-stage development or global commercialization, making such deals a practical choice. At the same time, it suggests the domestic ecosystem still needs to better support the maturation of early-stage innovation.

Yan outlined a four-step path for global expansion: project globalization, R&D globalization, commercialization globalization and rule-setting. The first stage is already under way, supported in part by China's R&D base and demand from multinational drugmakers facing patent expiries. The second stage — R&D globalization — will require capabilities in global clinical development, regulatory alignment and cross-border team management.

Commercialization, he said, presents greater challenges, as success depends on navigating different healthcare systems and reimbursement structures. The final stage would involve participating in the setting of international pharmaceutical standards.

Yan said Zai Lab is pursuing this approach through programs such as its DLL3 antibody-drug conjugate, using core assets to build integrated global systems in clinical development, regulation and compliance.

Editor's note: "Shanghai 2035: Answers for the Future" is a multimedia series produced by the Shanghai Municipal Government Information Office and Jiemian News. The project explores the city's long-term development across key sectors through documentaries, expert roundtables and interviews. The biopharma chapter examines how Shanghai is developing its drug innovation ecosystem, with a focus on clinical resources, commercialization pathways and global expansion.