In the face of escalating homogenization and global competition in the pharmaceutical industry, coupled with the synchronized resonance of policies and industry and continuous strengthening of innovation support, how can Sino Biopharmaceutical respond to industry changes and seize the opportunities of the era with a unique development strategy? On May 14, the 6th CICC Healthcare Industry Summit 2026 was held in Shanghai. Theresa Tse, Chairwoman of the Board of Sino Biopharmaceutical (1177.HK), attended and delivered a speech, providing a clear answer for achieving a global breakthrough through a differentiated M&A strategy for local Chinese pharmaceutical companies, combined with a leading advantage across the entire value chain. 

Differentiated M&A: Escaping the Red Ocean of Homogenization to Open Up a Blue Ocean of Innovation

China has become a global source of innovation, with over 50% of Investigational New Drug (IND) molecules approved by the Food and Drug Administration (FDA) originating from China. However, amidst this rapid growth, the problem of homogenization is becoming increasingly severe. This not only consumes a large amount of R&D funds but also wastes valuable clinical resources, leading to tighter regulatory approvals. Theresa Tse stated at the conference: "We cannot always be on the path of catching up. For Sino Biopharmaceutical, the fastest way to overcome homogenized competition is through mergers and acquisitions - acquiring innovative assets that are significantly differentiated and protected by patents."

Based on this judgment, Sino Biopharmaceutical became the first large domestic pharmaceutical company to proactively integrate top domestic Biotech firms through strategic M&A, completing two major acquisitions within a year. In the field of oncology, LaNova Medicines has a unique tumor microenvironment-specific antibody development (LM-TMETM) platform. This platform is particularly adept at tackling highly toxic targets and can be applied to various forms of antibodies, antibody-drug conjugates (ADCs), and T-cell engagers (TCEs), thereby opening up a blue ocean of innovation amidst "involuted" competition. In the chronic disease sector, Hygieia possesses the world's only clinically validated small interfering RNA (siRNA) delivery technology platform that supports a "once-a-year injection" regimen. This platform can cover multiple high-value areas such as cardiovascular and cerebrovascular diseases, nephropathy, and weight loss, and is set to become a long-term growth engine for the company's chronic disease pipeline. 

Leading the Entire Chain: Co-building an Innovation Ecosystem and Promoting Internationalization

M&A is a crucial starting point for the company's development, and the leading advantage across the entire value chain is the fundamental basis supporting Sino Biopharmaceutical's global expansion. On the production side, Beijing Tide Pharmaceutical is the first Chinese company to obtain Good Manufacturing Practice (GMP) certification for injections from Japan. Chia Tai Tianqing's chemical drug production base in Lianyungang holds the nation's first new GMP certificate (No. 001), with multiple production lines certified by the EU's current Good Manufacturing Practice (cGMP) and the US FDA. The biologics production base in Nanjing has a total capacity of 86,000 liters, with six 10,000-liter scale production lines, ranking its production capabilities among the top in the country. On the R&D side, platforms for small molecules, bispecific antibodies, ADCs, Artificial Intelligence (AI)-empowered Protac drug discovery, as well as innovative formulation platforms for inhalation and transdermal patches, continuously deliver high-quality assets. This June, the Shanghai Global R&D Center will officially open, further strengthening the company's forefront position in scientific research and innovation. 

In terms of external collaborations, Sino Biopharmaceutical actively cooperates with large multinational pharmaceutical companies to enhance its own product matrix. Recently, the company reached an exclusive strategic cooperation with GlaxoSmithKline (GSK). This is the first time GSK has chosen a local Chinese company for commercialization cooperation in its core area. The partnered product, Bepirovirsen, is set to become a milestone product in the field of hepatitis B cure, covering the 75 million hepatitis B patient population in China. From Boehringer Ingelheim to GlaxoSmithKline, the successive "powerhouse collaborations" fully demonstrate that the company's diversified international cooperation model is rapidly taking shape. In addition, the company is actively forming the Shanghai Association for Biopharmaceutical Enterprises Going Overseas, bringing together well-known large Chinese pharmaceutical and biotechnology companies. The association focuses on markets in the Asia-Pacific region and countries along the "Belt and Road", aiming to accelerate the international expansion of Chinese innovative drugs and enhance the international influence of China's drug regulation. 

"From being primarily focused on generic drugs in the past, to a comprehensive transformation towards innovation, and now to the beginning of a new journey of internationalization, going global is our core goal for the next decade", said Theresa Tse. "Sino Biopharmaceutical has a promising future and is one of the platforms most worthy of long-term attention and investment."

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