Multinational pharmaceutical companies are heavily investing in China, focusing on the consumer-grade market.

Recently, multinational pharmaceutical companies have announced a new round of investment plans in China, covering various fields from weight loss drugs to oral health. In this round of investment, healthcare companies are targeting China’s huge health consumer market.

Eli Lilly recently announced plans to invest $3 billion in China over the next 10 years to build capacity for GLP-1 drugs, targeting both existing diabetes injection medications and weight loss injections, as well as future oral weight loss drugs.

Lilly stated that it plans to establish a localized supply system for oral weight loss drugs in China. Oral weight loss drugs are seen as the next massive consumer market for pharmaceutical companies, especially in China’s highly developed e-commerce market, where healthcare companies are accelerating their penetration into consumers.

Global health company Hélion also announced that it is accelerating its expansion in China, moving into second- and third-tier cities. Hélion plans to invest £65 million (about 600 million RMB) to build a new oral health factory in Shanghai, adjusting its oral health product supply in a timely manner to meet Chinese consumer demand. The Chinese market accounts for about 10% of Hélion’s business and contributes over £1 billion (about 9.2 billion RMB) in annual revenue.

On March 12, Eric Ducournau, CEO of Pierre Fabre Laboratories, a multinational pharmaceutical and dermatology skincare company, told Yicai that “We are continuously increasing our investment in China’s oncology and dermatology skincare sectors. China is Pierre Fabre’s most important overseas market and has been clearly positioned as a strategic pillar for future growth.”

Ducournau told Yicai that the developed e-commerce sector in China has driven the growth of the health consumer market. By 2025, e-commerce will account for about two-thirds of Pierre Fabre’s overall dermatology skincare business in China, achieving double-digit year-over-year growth.

Pierre Fabre established its innovation R&D center in Shanghai in 2023. Ducournau expects that by 2026, about 15% of Pierre Fabre’s sales will come from locally developed innovative products in China.

During his visit to China, Ducournau also toured several innovative Chinese tech companies and was surprised by the rapid development of technology-enabled health industries in China. “Here, emerging technologies like artificial intelligence are being adopted faster than in many parts of the world. We are also seeking collaborations with more Chinese startups, aiming to integrate AI and other technologies into our medical value chain to enhance our impact.”

He also mentioned that he has observed continuous progress in China’s efforts to optimize the business environment and deepen healthcare reform. “These measures create a more open and predictable business environment for multinational companies. The series of policies launched by the Chinese government to support the entire biopharmaceutical industry chain are particularly notable, providing strong support for companies like Pierre Fabre to continue investing, innovating, and developing in China.”

(Article from Yicai)