Multinational Pharmaceutical Enterprises Collectively "Increase Holdings" in China: A Trust Vote Worth Over 100 Billion Yuan

21st Century Business Herald Reporter Ji Yuanyuan

After AstraZeneca announced plans to invest over 100 billion RMB (about $15 billion USD) in China by 2030 to expand its pharmaceutical manufacturing and R&D footprint, several multinational pharmaceutical companies (MNCs) have consecutively announced increased investments in the Chinese market.

Recently, the China Development High-Level Forum 2026 Annual Conference was bustling with a “MNC Investment Boom.” Novartis CEO Vasant Narasimhan announced at the “Healthy China 2030” and Healthcare Industry Development session that Novartis plans to invest over 3.3 billion RMB to launch large-scale expansion projects in China. In the same week, AstraZeneca announced the establishment of two major manufacturing bases in Shanghai and Guangzhou, while Eli Lilly unveiled a plan to invest a total of $3 billion over the next decade.

This marks a strategic shift for multinational pharmaceutical companies in China from simply “selling medicines” to “innovating in China, manufacturing in China, and co-creating with China.” It’s not only a vote of confidence in the Chinese market but also a key part of their global supply chain and R&D restructuring.

During the China Development High-Level Forum 2026, representatives of participating multinational pharmaceutical companies unanimously stated that China plays a vital role in the global pharmaceutical market, has integrated into the global biopharmaceutical innovation ecosystem, and remains optimistic about the future of China’s pharmaceutical industry. They expressed willingness to increase investment, introduce more cutting-edge international products and technologies into China, and contribute to the “Healthy China” initiative.

“From current investment directions, it’s clear that multinational pharmaceutical companies aim to seize the next-generation technological high ground, focusing their investments on high-barrier, high-growth sectors such as cell and gene therapy (CGT), radioligand therapy (RLT), GLP-1 weight loss/metabolism, and respiratory syncytial virus (RSV) vaccines, to capture structural growth opportunities over the next decade,” said a securities industry analyst specializing in healthcare to the 21st Century Business Herald.

Hundreds of Billions in Investment

Investment by multinational pharmaceutical companies in China has become a major hotspot.

On the eve of the China Development High-Level Forum 2026, AstraZeneca announced plans to build a cell therapy production and supply base and an innovation center in Shanghai to develop end-to-end cell therapy capabilities; almost simultaneously, its radioligand drug production base in Guangzhou was revealed. The synergy of these two bases will significantly enhance AstraZeneca’s localized production capacity in new drugs and therapies.

Iskra Reic, AstraZeneca’s Global Vice President and Head of International Business, said: “For over 30 years, we have worked hand-in-hand with China to bring scientific breakthroughs to patients. Relying on the major investment announced in January this year of over 100 billion RMB, we are accelerating our cooperation and investment in China. By expanding our end-to-end value chain capabilities, supporting innovation-driven development, and helping improve health outcomes for patients in China and globally.”

From initial product imports to now covering R&D, manufacturing, and supply across the entire value chain, the trajectory of multinational pharmaceutical companies reflects a profound evolution of their role in China.

Novartis is also making strong strides. During the same forum, Novartis announced it would continue increasing investment in China, expanding its R&D, manufacturing, and operational footprint with an expected investment exceeding 3.3 billion RMB to support innovation and high-quality development of China’s biopharmaceutical industry. Meanwhile, Novartis is focusing on the high-quality development of the RLT innovation ecosystem, submitting policy recommendations related to regulatory governance and clinical application.

Novartis suggests, on one hand, further improving the regulatory system covering the entire lifecycle of radiopharmaceuticals, standardizing management processes, establishing technical standards for radiopharmaceuticals, and optimizing policies for localized production to promote safe, compliant, and sustainable industry development. On the other hand, it recommends optimizing hospital access and clinical application mechanisms, establishing green channels for patient admission, improving insurance and payment policies, strengthening nuclear medicine capabilities, and increasing patient access to ensure these innovative therapies benefit more patients efficiently.

In recent years, China has been accelerating its emergence as a key source of global pharmaceutical innovation. To fully grasp this momentum, Novartis stated it will continue to expand its R&D investment and actively explore external collaboration opportunities within China’s biopharmaceutical sector.

On one front, Novartis plans to expand clinical research in China, accelerate the development of innovative drugs for the Chinese market, and leverage China’s clinical research advantages to promote early-phase (I/II) clinical trials, speeding up global pipeline innovation. On another, it is increasing its investment in China’s business expansion, seeking early and in-depth engagement with promising local innovative companies, and deepening cooperation with Chinese partners.

Since 2024, Novartis has partnered with multiple Chinese innovative drug companies, with potential investments exceeding 80 billion RMB. These collaborations aim to bring promising innovations in cardiovascular, oncology, renal, and neuroscience fields to more patients in need.

From Scientific Investment to System Optimization

Why are multinational pharmaceutical companies intensifying their investments now? The answer may lie in the words of senior executives.

Vasant Narasimhan, CEO of Novartis, said: “China is crucial for Novartis’s long-term development and innovation. We will continue to introduce innovative medicines for Chinese patients and strive to be China’s most valuable and trusted healthcare partner.”

David A. Ricks, Chairman and CEO of Eli Lilly, stated: “Investment in talent should start with investment in health. However, the growing challenge of obesity is becoming a significant obstacle to achieving this goal. Obesity is not only a health issue but also a matter of national development, productivity, and future competitiveness. China’s ‘Weight Management Year’ initiative demonstrates the government’s forward-looking and systematic public health approach. By promoting earlier intervention and increasing access to innovative treatments, we can work together to build a healthier, more vibrant future society. Lilly will continue to actively participate and promote this important process.”

Iskra Reic also noted that in recent years, the number of drugs developed in China has doubled, and last year, one-third of global licensing agreements came from Chinese companies. This clearly signals confidence in China’s biopharmaceutical innovation. “Therefore, AstraZeneca attaches great importance to building comprehensive manufacturing, R&D, and development capabilities in China to bring more cutting-edge innovations to patients.”

Severin Schwan, Chairman of the Roche Group, said: “The Chinese government has demonstrated remarkable foresight by continuously investing in building a leading global innovation ecosystem. Heavy investments in basic science, higher education, and top universities have cultivated world-class research soil. Moreover, China’s regulatory system has been continuously improved, demonstrating progressive governance in areas like approval efficiency and intellectual property protection, providing institutional support for high-quality industry development.”

In recent years, China’s reform of the drug review and approval system has deepened, with significantly faster approval of innovative drugs and more scientific updates to the national reimbursement drug list, creating a predictable policy environment for multinational companies. China is not only a vital market but also a key driver of global healthcare innovation.

A McKinsey report pointed out that over the past decade, China’s pharmaceutical innovation ecosystem has undergone a profound transformation from catching up to running parallel. Since the 2015 regulatory reforms ignited innovation engines, and by 2025, China had fully aligned with global regulatory standards, it has become a significant contributor to nearly one-third of the world’s innovative pipelines.

In terms of R&D output, China has achieved a leap from quantitative to qualitative growth. In 2015, China contributed only 4% of global innovative R&D pipelines and approvals; by 2025, these figures had risen to 30% and 20%, respectively. In the frontier field of next-generation therapies, China’s performance is especially prominent: as of September 2025, China contributed 34% of early-stage (I/II) clinical pipelines for next-generation therapies, leading globally in ADCs and bispecific/trispecific antibodies, accounting for 54% and 48%, respectively.

Based on this, McKinsey emphasizes that multinational companies need to redefine their roles in China’s innovation ecosystem. They should incorporate China’s innovation into their global R&D strategies rather than viewing it solely as a sales market. This requires strengthening scientific and clinical capabilities in China, optimizing internal processes to match “China speed,” and avoiding missed opportunities due to inefficiency.

For investors, the key is to clarify their participation in the “serving the world through China” innovation logic. This involves formulating clear China strategies, establishing local footprints, supporting portfolio companies to leverage China’s R&D advantages, and even envisioning and investing in “hybrid” biotech companies that integrate top global capabilities.

Upgrading Localization Strategies

A close look at this wave of investments reveals a notable shift: multinational pharmaceutical companies are moving from “entering China with products” to “rooting innovation in China,” with deeper and broader localization.

For example, AstraZeneca not only builds manufacturing bases but also has signed a university-level research cooperation agreement with Tsinghua University, establishing the “Tsinghua University (Intelligent Industry Research Institute) – AstraZeneca AI Drug R&D Joint Center.” The collaboration will focus on disease mechanism research, multi-omics analysis and data science, biomarker discovery, translational medicine, clinical development strategies, and AI applications.

Similarly, Lilly’s Chairman and CEO, David A. Ricks, visited Tsinghua University, met with several department leaders, and exchanged views on global health challenges, life sciences innovation, and public health policies. They discussed deeper cooperation in translating scientific achievements and cultivating talent.

Ricks said that future breakthroughs in health will not only come from laboratory discoveries but also from the ability to “bring innovation into real-world settings”—accelerating research into clinical practice, reaching patients earlier, and making health systems more resilient and sustainable. Truly impactful innovations often cross disciplinary boundaries, requiring collaboration among medicine, engineering, data science, and social sciences. Only through more open, long-term cooperation connecting research, clinical validation, and industrialization can good ideas quickly become reality.

“We are in an era where life sciences, AI, and automation are accelerating convergence. Real innovations that change patients’ lives need to connect scientific exploration, clinical validation, and industrialization into a smoother chain,” Ricks emphasized. Lilly will continue to uphold long-term investment and open innovation principles, promoting faster and more stable translation of scientific progress into accessible health benefits.

Currently, China is at a critical stage of the “14th Five-Year Plan” and accelerating the construction of a Healthy China. During the same forum, GSK submitted a special report titled “Value Transformation under the Health Priority Strategy: Breakthroughs in Functional Cure of Hepatitis B, Moving from ‘Passive Treatment’ to ‘Proactive Health,’” which called for: on one hand, promoting integrated medical and preventive reforms, technological innovation, and optimized healthcare service models to accelerate the development of a modern, comprehensive prevention system covering all populations and life stages. This includes health capital protection, early disease intervention, and functional recovery, shifting healthcare resources from passive treatment after disease onset to risk identification, proactive screening, and long-term management, upgrading the system from disease prevention to overall health promotion; on the other hand, transforming healthcare investment from a cost to a strategic, foundational investment focused on people’s health, population quality, and long-term social returns. This requires reshaping the value recognition system for innovative drugs from cost-based to multi-dimensional strategic value assessment.

GSK pointed out that breakthroughs in major disease areas could serve as key validation for the new value investment concept under the health priority strategy. If innovative solutions like the “functional cure” for hepatitis B can be used as a “breakthrough” and “model,” they could significantly reduce the risks of end-stage diseases like cirrhosis and liver cancer, lower lifelong treatment costs, increase workforce productivity, reduce family burdens, and promote social equity. They could also drive improvements in diagnostic and treatment standards and industry innovation, providing replicable cases for the transformation of health system value orientation.

It’s clear that from “serving China, for China” to “serving the world from China,” the role of multinational pharmaceutical companies is undergoing a qualitative leap. For the entire industry, this is not only a confidence signal and an opportunity of the times but also a crucial step for China’s health industry to reach the global high ground.