In a surprising development, the Chinese biotech firm Akeso has emerged as a significant player in the global pharmaceutical industry by introducing a lung cancer drug that outperformed Merck’s Keytruda, the world’s top-selling medicine.
In September, Akeso, a relatively unknown biotech company from China, made headlines at the World Conference on Lung Cancer. Their new drug, Ivonescimab, showed remarkable efficacy in clinical trials conducted in China. Patients treated with Ivonescimab experienced a delay in tumor growth for an average of 11.1 months, significantly longer than the 5.8 months observed in those taking Keytruda, developed by the American pharmaceutical giant Merck.
This achievement by Akeso is not an isolated case. China’s pharmaceutical sector, long known for its state-owned enterprises producing generic or ‘me-too’ drugs, has seen a transformation over the past decade. Chinese biotech firms are now innovating, developing advanced medications and signing substantial licensing deals with Western companies. For instance, AstraZeneca secured a $1.92 billion deal with CSPC Pharmaceutical Group to create cardiovascular drugs, and Merck entered a $2 billion agreement with Hansoh Pharmaceutical for a weight loss pill.
Despite the innovative strides made by firms like Akeso, skepticism remains prevalent within China regarding the quality of domestic pharmaceuticals, particularly generics. A recent investigation was prompted by public concern over the quality of locally produced generic drugs, though China’s health regulator affirmed their safety.
Internationally, the success of Akeso’s drug has piqued interest, especially after DeepSeek’s advances highlighted China’s potential in the biotech arena. However, U.S. investors and regulators have traditionally been wary of data quality from Chinese clinical trials, which has historically led to rejections from the FDA due to perceived inadequacies in trial setups.
Akeso’s CEO, Michelle Xia, highlights the importance of innovation driven by a deep understanding of disease biology and protein engineering, supported by China’s abundant talent and rapid development capabilities. Akeso has already received approval from China’s pharmaceutical regulator to treat certain lung cancer patients with Ivonescimab, and a global trial is underway to verify its efficacy in broader markets.
While Akeso’s progress is lauded internationally, domestically, some Chinese citizens remain cautious, often preferring more expensive imported medicines. These sentiments reflect an enduring perception, as articulated by Beijing resident Gu Zhihao, that higher costs equate to higher quality in pharmaceuticals.
Akeso’s breakthrough offers a glimpse into China’s growing biotech capabilities and its potential to compete on the global stage. As the company prepares for global trials of its promising lung cancer drug, the international community watches closely, recognizing the shifting dynamics in pharmaceutical innovation driven by Chinese firms.
