Chinese companies are no longer just powering the pharma industry from behind the scenes, or solely churning out “me too” versions of first-in-class drugs. Regulatory reforms have sparked a rapid acceleration of home-grown innovation, moving the country’s drugmakers toward pharma’s cutting edge.
Large pharmas are now increasingly looking to Chinese biotechs for new pipeline assets, with 35% of deals in 2025 originating in China. The country has also quickly become a hub for faster and cheaper clinical trials, and achieved a major milestone in 2024 when Jiangsu Hengrui Pharmaceuticals overtook AstraZeneca as the world’s top clinical trial sponsor.
But this rise hasn’t come without friction. Lawmakers have cast a wary eye toward potential security threats created by Chinese companies doing business with American firms, and after years of debate, recently tackled those concerns through the Biosecure Act. Passed as part of the National Defense Authorization Act, the law now requires American companies with federal grants or contracts to sever supply chain ties with certain Chinese firms.
Even with these hurdles, China has become a global powerhouse in pharma R&D. Which companies are leading this shift?
Idea Pharma has long tracked company-specific R&D trends through its annual Innovation and Invention Index. And amid China’s precipitous rise, Idea launched a new report this year in collaboration with SAI MedPartners identifying the top 10 Chinese companies that are not only developing innovative drug options but also parlaying them into commercial wins.
Here are the top three from the report and what sets them apart.
Jiangsu Hengrui Pharmaceuticals
Founded in 1970, Hengrui has a well-established presence on the global stage with 30 commercialized drugs in China, and 20 in the European Union, the U.S. and Japan. With another 100 investigational drugs across more than 400 ongoing clinical trials, Hengrui is poised to grow more.
The company secured major pharma deals last year, including pacts with GSK and Merck & Co.
And its pipeline includes a number of promising contenders, including an investigational GLP-1/GIP obesity drug developed in partnership with Kailera Therapeutics that could position it as a future competitor to rivals like Eli Lilly’s blockbuster Zepbound.
“Hengrui’s leading position is primarily underpinned by three structural drivers: robust financial performance, sustained high-intensity R&D investment, and a steady stream of innovative drug outputs,” the report noted. “In 2024, the company increased its R&D spending by 33.8% year-on-year, driving a 30.6% rise in innovative drug revenue to approximately RMB 13.9 billion (USD $1.9 billion) and demonstrating a highly efficient translation of R&D investment into commercial performance.”
In addition to obesity, Hengrui is paving new ground in solid tumors, particularly in gynecologic oncology for conditions such as breast and ovarian cancer. But its focus areas have expanded well beyond cancer with a pipeline that also includes respiratory and immunological diseases, cardiovascular disease and neurology.
“With ongoing product approvals, pipeline expansion, and deepening global collaborations, Hengrui is increasingly positioning itself at the forefront of global pharmaceutical innovation,” the report stated.
BeOne Medicines
Formerly known as BeiGene, BeOne Medicines has distanced itself from its Chinese roots with a new name and new headquarters in Switzerland. But the company nonetheless ranked second in Idea and SAI’s index.
Founded in 2010 by an American entrepreneur and a Chinese-American scientist, the oncology-focused firm secured approximately $3.8 billion in global revenue last year, driven by strong sales of its blockbuster blood cancer treatment Brukinsa and its esophageal cancer drug Tevimbra.
“BeOne’s leadership is primarily underpinned by its deep R&D capabilities, breakthrough commercialization of flagship products, and accelerating global footprint,” the report stated. “The company consistently ranks first in R&D spending among domestic peers, with R&D investment accounting for approximately 52% of revenue in 2024, laying a robust foundation for its innovation engine through sustained, disciplined investment.”
BeOne lists more than 40 clinical and commercial stage assets, and over 175 ongoing clinical trials around the world. Its pipeline of antibody-drug conjugates, protein degraders, small molecules and multi-specific antibodies not only includes its highly anticipated lymphoma drug, sonrotoclax, which could debut in 2026, but a number of other potential first-in-class contenders.
The company has honed its capabilities in B-cell malignancies and hopes to deliver new therapies for acute myeloid leukemia. But it’s also taking aim at solid tumors, including lung, breast, gynecologic and gastrointestinal cancers.
“With systematic R&D planning and a rapidly advancing globalization strategy, the company is accelerating the transition of China’s original innovation from ‘follower’ to ‘leader,’ redefining the presence of Chinese pharmaceutical innovation on the global stage,” the report stated.
Sino Biopharmaceutical
Founded in 2000 with a primary focus on generic medications, Sino Biopharmaceutical made a deliberate pivot in 2018 toward innovation, developing a deep pipeline in oncology, respiratory, hepatology and surgery/analgesia.
Promising contenders include its CDK inhibitor, culmerciclib capsule, which was just approved in China for two challenging types of advanced breast cancer — HR-positive and HER2-negative — and a potential first-in-class MASH drug that early research indicates could even have the potential to reverse liver fibrosis in patients with advanced disease.
In 2024, the company generated $1.7 billion from novel drugs and $1.51 billion in oncology drug sales, and is now looking to build further through collaborations and global expansion, according to the report. In July, the company gained full control of Chinese oncology-focused biotech LaNova Medicines and its eight clinical-stage drugs. The acquisition followed two notable successes for LaNova, including its coveted PD-1/VEGF bispecific antibody, which was bought by Merck, and an antibody-drug conjugate acquired by AstraZeneca.
“Sino has adopted a pragmatic, stepwise strategy. This involves in-licensing innovative therapies from international players … while simultaneously advancing its proprietary innovative drugs for overseas registration, targeting global unmet clinical needs,” the report stated.
As the lead boats in a rising tide of Chinese pharma innovation, these companies will be ones to watch in the years ahead.
