0 items USD 0.00AI (Artificial Intelligence) to Help the Chinese Pharma Sector to Get Back on Track
China is looking for answers in AI for its overburdened healthcare system, which is helplessly staring at the country鈥檚 rapidly ageing population and shortage of healthcare professionals across the country.
China is currently the second-largest pharmaceutical market in the world. Big data and artificial intelligence (AI) will have a significant technological impact across all the aspects of China鈥檚 pharmaceutical industry.
China is heavily investing in AI to help facilitate the growth of its innovative pharmaceutical sector. Recently, GE Healthcare launched the Edison AI platform in Shanghai and announced partnerships with five software development companies. A key area of the current focus is machine learning algorithms, which help reduce R&D cycle times and costs. This ultimately allows companies to have a strong and sustainable drug pipeline while also increasing trial completion rates.
The Chinese government has recently issued a strategic plan 鈥�Made in China 2025鈥�, under which the country has committed to invest in R&D to boost innovation.听With a simultaneous expanding technological market, it seems logical for China to increase AI investment. Pharmaceutical companies that have previously focused on their Western client bases are now focusing on China. In the current political climate, it is difficult to predict future deals between China and the US, with the current trade war between the two economic superpowers.听
The implication of this is that President Trump鈥檚 administration may limit the number of Chinese investors investing in US pharmaceutical technologies with concerns over China鈥檚 access to sensitive user data and the use of US technologies for the Chinese market. This could affect future AI deals in the pharmaceutical space.
Despite the current tensions between China and Hong Kong, the growth of Hong Kong and Shanghai stock exchanges will continue to drive growth and deal-making in the domestic pharmaceutical and AI markets. China鈥檚 current financial climate is expanding, with the emergence of 鈥楾he STAR (Sci Tech innovAtion boaRd) 麻豆原创鈥�, China鈥檚 very own Nasdaq-style tech board, which represents a new funding platform. With companies trying to increase IPO valuation, investment in AI can help expand pharmaceutical development efficiency.
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The report offers profiles and SWOT analyses of the major players in the Chinese pharmaceutical market (Pfizer, Merck, Novartis, Jiangsu Hengrui Medicine, Sinopharm and Tong Ren Tang) and profiles and SWOT analyses of the major players in the medical device market (Medtronic, Abbott, Roche, Boston Scientific and Shinva)
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However, for the Chinese pharmaceutical sector to be successful, obstacles such as different language barriers, changes in government regulations and sale of counterfeit drugs through the online need to be addressed. China needs to focus on quality control and the monitoring and manufacturing process of pharmaceuticals if they want to achieve the 鈥楳ade in China 2025鈥� goal.
Major developments and discoveries in the Chinese healthcare and pharma industry
- The Chinese pharmaceutical industry - comprising the manufacturing of Western Medicines, Active Pharmaceutical Ingredients (API), Traditional Chinese Medicine (TCM), Biologics and Herbal Medicines - was valued at USD 168.6 billion in 2010 and grew to USD 424.6 billion in 2016. In 2010, the pharmaceutical market for western medicine was worth USD 53.8 billion, which increased to USD 106 billion in 2016 at a CAGR of 12%.
- Chinese pharmaceutical industry is forecast to be USD 132.9 billion in 2018 and reach USD 209 billion by 2022. The Chinese medical device market was valued at USD 36 billion in 2015, which increased to USD 40.1 billion in 2017. Since 2015, the China Food and Drug Administration (CFDA) has released several policies to reform the pharmaceutical market. Reforms to clinical trial processes have helped to reduce R&D costs and time, while initiatives for the market authorization process have helped to minimize regulatory delays.
- Insilico Medicine has signed a dual-program discovery collaboration with Jiangsu Chia Tai Fenghai Pharmaceutical worth up to USD 200 million.
- Atomwise Inc., one of the leading artificial intelligence (AI) company for drug discovery, has collaborated with Chinese biopharmaceutical company, Hansoh Pharmaceutical Group Company Limited, to design and discover potential drug candidates for up to eleven undisclosed target proteins in multiple therapeutic areas.
- 34% of Chinese AI deals involved companies headquartered in the US.
- China has doubled the amount of spending on public hospitals in the last five years which stands at USD 38 billion. The Chinese government is aiming for a USD 2.3 trillion healthcare industry by 2030.
- China's largest online e-commerce company Alibaba has entered a partnership with Chinese hospitals to develop a smart diagnostics platform. Baidu, Google's answer to China, is developing an open-source AI technology that will allow pathologists to identify breast cancer symptoms at early stages.
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Sudeep Chakravarty
