China’s pharmaceutical industry bets big on small nucleic acid drugs in 2024
- China's pharmaceutical industry is shifting focus from mRNA-based drugs to small nucleic acid drugs, like siRNA and antisense oligonucleotides, which are expected to be a major breakthrough in 2024.
- The Chinese drug delivery market is projected to grow significantly, indicating strong demand for innovative drug delivery solutions, which small nucleic acid drugs can potentially fulfill.
- Strategic collaborations and investments are positioning Chinese pharmaceutical companies to compete globally, leveraging localized delivery methods and tapping into local market needs to gain a competitive edge.
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China's Pharmaceutical Industry Bets Big on Small Nucleic Acid Drugs in 2024
The Chinese pharmaceutical industry is poised to make significant strides in the development of small nucleic acid drugs, matching up to global giants in the race for breakthroughs. This new focus comes after a shift in investment from the initially buoyed messenger ribonucleic acid (mRNA) drug market, which was initially boosted by mRNA vaccines but quickly shrank following the Covid-19 pandemic. Companies like Stemirna Therapeutics faced lawsuits or layoffs, leading to a shift in investment focus toward small nucleic acid therapies.
Market Outlook and Growth
According to recent market research, the China drug delivery market is projected to grow at a compound annual growth rate of 9.14% from a market value of $76.071 billion in 2022. This rapid growth indicates a strong demand for innovative drug delivery solutions, which small nucleic acid drugs can potentially fulfill.
Breakthroughs in Small Nucleic Acid Drugs
In 2023, there were 20 funding events for small nucleic acid drugs, including small interfering RNA (siRNA) and antisense oligonucleotides (ASO), which have proven to be effective. Companies like Novartis introduced its inclisiran sodium injection to the Chinese market, which is a siRNA lipid-lowering drug. Notably, the company reports administering this drug to over 200 new patients daily.
Leading companies, such as Sanegene Bio, Ribo Life Science, and Argo Biopharma, completed significant business transactions at the end of 2023, with the highest potential deal exceeding $4 billion. This has heightened expectations within China’s pharmaceutical industry for small nucleic acid drugs to become the next major breakthrough in 2024.
Collaborations and Opportunities
The year-end of 2023 saw a surge in attention toward small nucleic acid drugs in China. This was mainly due to large-scale collaborations between companies like Ribo Life Science, Argo Biopharma, and multinational corporations. These collaborations highlight opportunities for Chinese pharmaceutical companies to leverage their strengths and compete on a global scale.
Strategic Partnerships and Execution
Suppose every company globally were starting from the same point, how should China’s pharmaceutical players assess their competitiveness? Speed, stability, and execution are crucial factors, according to experts. Chinese companies may claim unique delivery systems like polymer nanoparticles (PNP) or nervous system delivery, but most still use GalNAc. With clear drug targets and delivery systems, doing things faster might be more key to capturing the market than seeking differentiation solely for the sake of it.
Another important aspect is choosing the right indications for drug development. According to experts, prioritizing drug development for rare diseases isn’t well-suited to domestic conditions. However, once validated, domestic companies quickly follow suit. Small nucleic acid drugs’ relatively strong drug-forming characteristics mean they could find a market domestically even without selling overseas.
Competitive Advantage
China’s pharmaceutical industry is uniquely positioned to leverage its existing strengths and investment in mRNA technology to compete with global giants. By focusing on small nucleic acid drugs and developing localized delivery methods, Chinese companies can gain a significant competitive edge in the global market.
Conclusion
The year 2024 promises to be a pivotal one for China’s pharmaceutical industry as it shifts its focus to small nucleic acid drugs. With significant investments and collaborations, Chinese companies are well-positioned to match up with global giants and potentially become the next major breakthrough in the industry. As the market continues to evolve, it will be exciting to see how these innovations shape the future of drug development and delivery.
