Foreign direct investment in research institutions and licensing in China

China has a very wide-reaching national pharmaceutical sector with very considerable production capacity. With the production of basic chemicals and active pharmaceutical ingredients (APIs), China has proven to be the world's leading supplier of APIs, and although China's API manufacturers are important exporters, exports of finished pharmaceutical products (FPP) have been rather non-existent to date.

In the Chinese market, currently about 96% of the drugs sold by Chinese pharmaceutical manufacturers are generic drugs. And generics account for more than 82% of the drugs sold in the Chinese market.

The further development of research and development in the pharmaceutical sector is one of the key priorities of the Chinese government. So far foreign companies have supplied almost all innovative products. Great attention is paid to innovations in the biotechnology sector and the development of bio similar products.

Due to the size and dynamics of the Chinese pharmaceutical market, it has proven to make economic sense for foreign innovation companies to establish strategic investments and innovation centres in China. The licensing mechanism is often used as an initial instrument for this purpose.

Bioqom makes use of government support and gives foreign direct investment in R&Din China the opportunity to establish research institutions and to license innovations to local Chinese companies or to commercialize new products.

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