In the past decade, China's innovative pharmaceutical industry has experienced frenzy, pain, and rebirth driven by capital. From the industry's reflection on the quality of clinical data triggered by the "722 incident" in 2015, to a small peak in innovative drug investment in 2018, the influx of capital has not only accelerated the development of the industry, but also brought about problems such as homogenization and internal competition.

In the investment boom, the short-sighted behavior of capital has led to the proliferation of new drugs, such as PD-1, which have become highly sought after by many. However, with the change of market environment and the adjustment of regulatory policies, such as the emergence of the foam in the innovative drug capital market in the second half of 2021, and the capital winter in the second half of 2022, the industry began to face new challenges.

Faced with the challenge of balancing the profit driven nature of capital with the long-term demand for innovation, some institutions choose to exit, while those who stick to it reset their valuation system and invest more cautiously. At the same time, patient capital such as state-owned assets and industrial capital CVC began to emerge.

Despite facing the challenges of medical insurance pricing, new drug admission, and corporate financing, China's innovative pharmaceutical industry is constantly accumulating experience in the game between capital and industry, and is moving towards improving industrialization efficiency and benchmarking with international capital markets.

In the next decade, China's innovative drug industry needs to further enhance its innovation capabilities and industrialization level on the basis of solving existing problems, in order to occupy a place in the global innovative drug market.