Everything seemed to be aligned for success, but shares in leading Chinese antibody developer RemeGen recently dropped by nearly 40%, reflecting a range of internal and external likely factors.

The global battle of the blockbuster obesity drugs appears set to come to China with the approval of Lilly's Mounjaro, although domestic competitors are fast catching up. 

One Chinese biotech executive is entertaining hopes of China’s domestic market for novel drugs growing to CNY300bn ($41bn). However, the country’s public payer spent just CNY90bn on such products in 2023 and is expected to increase expenditure to more than CNY100bn this year.

A reported buyout bid for Legend Biotech has delivered a much needed shot of confidence to the Chinese biotech sector, despite not being confirmed. Amid a shifting environment, Hengrui also sees globalization as essential to its future.