China’s pharmaceutical industry will be at the global forefront in the next 5 years, Fosun Pharma chairman says

Shanghai Fosun Pharmaceutical wants investors to focus on its “normal” development of medicines instead of zooming in on its delivery of vaccines and concoctions to treat Covid-19, because of the uncertainties over the pandemic’s treatment and prevention, said its chairman.

“There may still be many variables in how to prevent and control [Covid-19] in the future, therefore we cannot too much rely on these products,” said the company’s chairman Wu Yifang, during an interview with South China Morning Post.

Instead, investors should cast their sights over the long-term prospects of China’s pharmaceutical industry, which has evolved rapidly in recent years, with major inroads into the research and development of new drugs. With cooperation and licensing agreements, Fosun Pharma, with a market capitalisation of HK$96.3 billion (US$12.3 billion), has transformed from a producer of generic drugs to a research powerhouse and incubator, with operations in medical devices, diagnosis and healthcare services.

“China has been catching up very fast in biopharma, where a strong foundation in manufacturing and the international standards [embraced by the industry] has put China on the same level” as the rest of the world, Wu said. “Taking into account the entire supply chain, production efficiency and costs of production, China will be at the forefront of the world in the next few years.”

Fosun Pharma, founded in 1994 by the Chinese billionaire and serial entrepreneur Guo Guangchang, will accelerate its investments in research and development, and speed up its innovation and internationalisation, aiming to build global influence as its rolls out blockbuster products.