by HUANG Hua

Shanghai has the foundations to become a global source of biopharma innovation, but further progress will depend on advances in capital, policy and ecosystem development, said Wayne Shi, president of Sanofi Greater China.

Speaking at the "Shanghai 2035: Answers for the Future" roundtable's biopharma session, Shi said the city is already one of China's leading biopharma clusters, supported by a long industry track record and an active policy environment. But moving from scale to global influence will require a shift toward higher-quality innovation.

A decade ago, China accounted for only a small share of global early-stage drug pipelines. Today, that share is approaching one-third. In 2025, Chinese pharmaceutical assets made up about 31% of global deal activity, while Shanghai contributed roughly one-sixth of China's Class 1 innovative drugs and about one-third of outbound licensing deals.

Shi said long-term capital is critical in a sector defined by high costs, long development cycles and significant risks. Short-term pressures can push companies toward lower-risk, repetitive targets, increasing the risk of homogeneous competition.

He added that policy coordination will be needed to support more clinically meaningful innovation. Recent central government guidance on drug pricing reform signals a shift in that direction, though implementation at the local level will be key.

Deeper integration with global markets is another priority. While cross-border licensing has increased, Shi said broader collaboration — across R&D, manufacturing and commercialization — remains limited.

Looking ahead, he said the global pharmaceutical industry is entering a period of patent expiries, creating demand for new assets and opening opportunities for Chinese companies. At the same time, gaps remain in market structure, payment systems and global operating capabilities.

Despite these challenges, Shi said the emergence of globally competitive Chinese drugmakers is likely within the next five to ten years, particularly as partnerships between domestic and multinational companies deepen.

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.