Red Alert: China Surpasses U.S. in Clinical Trials

By Dan Leonard, Executive Director, We Work For Health

Global innovation is a long-distance race. For decades, the United States has led it.

American ingenuity has set the pace in research and development across various sectors, including life sciences. Breakthrough strides have delivered positive outcomes for the nation’s patients and economy.

When the U.S. looked over its shoulder, there was a large gap, no competitor posing an imminent threat.

This is no longer the case.

That sound growing louder and louder is the sound of China closing fast and nipping at our heels. According to a recent report from GlobalData, the U.S. has already been overtaken in a major metric, and the development serves as a clear call to U.S. policy leaders.

GlobalData, which tracks new clinical trials across the global biopharmaceutical industry, found that China, for the first time, surpassed the U.S. in the number of trials launched. This changing of the guard was a long time coming, as We Work For Health has been closely monitoring a prolonged surge from China-headquartered companies in the category.

IQVIA also recently sounded the alarm bell.

Earlier in May, while identifying rising competition from China as a threat to the United States leadership position in the life sciences, IQVIA noted that companies headquartered in China “now sponsor 30% of all interventional industry-funded Phase I–III clinical trials globally.” The U.S. stood at 35%, according to its figures.

China-headquartered companies were responsible for just 5% of such trials in 2014 and only 1% in 2009, per IQVIA.

Various factors determine leadership in innovation: private and public investment, the presence of world-class facilities and scientists, and a commitment to strong intellectual property laws. All of these pillars must be strong, but I want to focus on the last one: IP law. 

It is well documented the Trump administration recognizes the importance of IP rights in staving off China, the European Union and other countries eager to surpass the U.S. in the innovation race.

According to a White House proclamation for World IP Day: “Our economy is the greatest in the world because we, more than any other country, incentivize individuals to dream big, take risks, and make the impossible possible. Through our promotion and protection of intellectual property, we are empowering musicians, writers, authors, scientists, and inventors to focus on what they do best.

“The future of our great nation depends on the continued safeguarding of our intellectual property, which fuels economic growth, technological progress, and global competitiveness.”

Given China’s blistering pace, it is vital that this sentiment be reflected in how the life sciences industry is regulated. America has little ground to cede on R&D. To protect jobs, domestic manufacturing, and access to medicine, this is the time for the life sciences industry to find its second wind — not to be tripped to the ground by excess regulation and anti-competitive laws.

The time to protect life science innovation – including the 5 million domestic jobs that deliver breakthrough treatments at best-in-world quality and speed and serve as a pillar of the U.S. economy – is now.

America’s patients and economy are depending upon it.