Global pharmaceutical industry faces structural shifts and rising Chinese competition

The global pharmaceutical industry is undergoing significant structural shifts driven by geopolitical competition and technological advancement. According to data from IQVIA, China has emerged as a major force in biopharmaceutical research and development, accounting for nearly one-third of the global biopharma pipeline in 2024. This places China closely behind the United States, which holds a 35% share, while Europe’s share has declined to 21%.

In Europe, the industry faces challenges including rising costs, inflation, and regulatory pressure to limit healthcare spending. A whitepaper by RS Group highlights that European companies are navigating fragile supply chains and a growing demand for personalized medicine. To remain competitive, the report suggests that firms must move beyond incremental improvements and invest in digital technologies such as artificial intelligence, robotics, and continuous manufacturing to increase efficiency and flexibility.

China’s rapid ascent from a low-cost generic manufacturer to an innovation leader in areas like antibody-drug conjugates (ADCs) is forcing Western pharmaceutical companies to rethink their strategies and production models.