THIS MATERIAL IS A MARKETING COMMUNICATION.
Video: Immunotherapy Competition
In this video, we will discuss the competitive immunotherapy landscape in China.
Market Potential
China’s PD(-L)1(programmed cell death protein 1) sales are expected to grow at 36% compound annual growth rate (CAGR) 2020-25e to RMB 62 billlon (vs. 2020e is expected to be RMB13 billion). This rapid growth will be mainly be driven by (i) significant medical demand to address a large patient population; (ii) favorable regulatory reforms to drive faster launches, with bigger/wider indication coverages; and (iii) reimbursement expansion, bridging the gap between demand and supply. Lung cancer, stomach cancer, Oesophagus cancer, and liver cancer, in total, represent about 55% of new cancer cases in China.
In China, there are 142 PD-(L)1/ PDL1(programmed death-ligand 1) inhibitor-related later-stage clinical trials ongoing, targeting cancer sites with higher incidence and frontline/(neo) adjuvant treatment, compared to only a handful that has been approved so far, that too for only a small number of indications. These clinical trials are aiming for wider patient coverage. We are positive on PD-(L)1's efficacy in the frontline treatment of major cancer types as well as in adjuvant settings. We think the leading domestic players are well placed relative to the competition.
Considering the various combo therapies in different cancer indications, we believe that the PD-(L)1 inhibitor as an immune modulator would likely play a basic role in carrying various other innovative drugs for oncology treatment.
Companies that can consistently develop newer treatment modalities, provide low-cost, high-quality drugs, and have strong academic-based sales teams should be able to capture market share.
Four leading domestic companies are leading the way in approvals as well as in key large indications.
As we can see from this table, while multinational companies were initially leading, four domestic companies have got approval for their PD1 molecule.
We detail below two large key indications (lung and stomach) and discuss progress among Chinese companies.
Lung cancer has the highest incidence worldwide and is well-studied by MNCs (multinational companies). It is getting competitive in China, but MNCs have taken the lead so far.
Hengrui, Innovent, and BeiGene are the Tier 1 domestic players, with indications approved or filed already. We believe, once these domestic companies get approved and included in reimbursement, they will be able to penetrate into tier 2/3 cities before the second wave of approvals come in, thereby creating a strong entry barrier.
In this table, we can see that domestic companies are catching up to multinational companies.
Stomach cancer is the second most prevalent cancer type in China, and new cases comprise 50% of the total incidence worldwide. (UBS Research, 13 Jan 2021).
Research & Devleopment (R&D) capability is the key driver for the development and successful launch of innovative medicines. By 1H2020, BeiGene had the largest R&D team (400+ in research and 1,350+ in clinical development), while the R&D teams at Innovent and Junshi are also growing.(1H2020 is the date) In terms of R&D expenditure, BeiGene, Innovent, and Junshi spent Rmb6.4billion, Rmb1.3billion, and Rmb0.9billion, respectively, in 2019.
As we can see in these charts, the three domestic companies have progressed well in strengthening their R&D efforts as well as developing the commercial sales team.
In summary, we continue to be impressed with the pace at which domestic Chinese companies have progressed on developing an immunotherapy pipeline, including PD1 molecules as well as combination therapies.
Disclaimer & Information for Investors
No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.
The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.
Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.
Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.
Products, services and information may not be available in your jurisdiction and may be offered by affiliates, subsidiaries and/or distributors of MAGI as stipulated by local laws and regulations. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Information for EU investors pursuant to Regulation (EU) 2019/1156: This document is a marketing communication and is intended for Professional Investors only. A Prospectus is available for the Mirae Asset Global Discovery Fund (the “Company”) a société d'investissement à capital variable (SICAV) domiciled in Luxembourg structured as an umbrella with a number of sub-funds. Key Investor Information Documents (“KI(I)Ds”) are available for each share class of each of the sub-funds of the Company.
The Company’s Prospectus and the KI(I)Ds can be obtained from www.am.miraeasset.eu/fund-literature . The Prospectus is available in English, French, German, and Danish, while the KI(I)Ds are available in one of the official languages of each of the EU Member States into which each sub-fund has been notified for marketing under the Directive 2009/65/EC (the “UCITS Directive”). Please refer to the Prospectus and the KI(I)D before making any final investment decisions.
A summary of investor rights is available in English from www.am.miraeasset.eu/investor-rights-summary/.
The sub-funds of the Company are currently notified for marketing into a number of EU Member States under the UCITS Directive. FundRock Management Company can terminate such notifications for any share class and/or sub-fund of the Company at any time using the process contained in Article 93a of the UCITS Directive.
Hong Kong: It is intended is for Hong Kong investors. Before making any investment decision to invest in the Fund, Investors should read the Fund’s Prospectus and the information for Hong Kong investors (of applicable) of the Fund for details and the risk factors. The individual and Mirae Asset Global Investments (Hong Kong) Limited may hold the individual securities mentioned. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Securities and Futures Commission.
Singapore: It is not intended for general public distribution. The investment is designed for Institutional investors and/or Accredited Investors as defined under the Securities and Futures Act of Singapore. This document is issued by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Monetary Authority of Singapore. Please consult with your professional adviser for further information on the availability of products and services within your jurisdiction.
Australia: The information contained in this document is provided by Mirae Asset Global Investments (HK) Limited (“MAGIHK”), which is exempted from the requirement to hold an Australian financial services license under the Corporations Act 2001 (Cth) (Corporations Act) pursuant to ASIC Class Order 03/1103 (Class Order) in respect of the financial services it provides to wholesale clients (as defined in the Corporations Act) in Australia. MAGIHK is regulated by the Securities and Futures Commission of Hong Kong under Hong Kong laws, which differ from Australian laws. Pursuant to the Class Order, this document and any information regarding MAGIHK and its products is strictly provided to and intended for Australian wholesale clients only. The contents of this document is prepared by Mirae Asset Global Investments (HK) Limited and has not been reviewed by the Australian Investments & Securities Commission.
Swiss investors: This document is intended for Professional Investors only. This is an advertising document. The Swiss Representative is 1741 Fund Solutions AG, Burggraben 16, CH-9000 St. Gallen. The Swiss Paying Agent is Tellco AG, Bahnhofstrasse 4, CH-6431 Schwyz. The Prospectus and the Supplements of the Funds, the KI(I)Ds, the Memorandum and Articles of Association as well as the annual and interim reports of the Company are available free of charge from the Swiss Representative.
UK investors: This document is intended for Professional Investors only. The Company is a Luxembourg registered UCITS, recognised in the UK under section 264 of the Financial Services and Markets Act 2000. Compensation from the UK Financial Services Compensation Scheme will not be available in respect of the Fund. The taxation position affecting UK investors is outlined in the Prospectus. This document has been approved for issue in the United Kingdom by Mirae Asset Global Investments (UK) Ltd, a company incorporated in England & Wales with registered number 06044802, and having its registered office at 4th Floor, 4-6 Royal Exchange Buildings, London EC3V 3NL, United Kingdom. Mirae Asset Global Investments (UK) Ltd. is authorised and regulated by the Financial Conduct Authority with firm reference number 467535.
Copyright 2025. All rights reserved. No part of this document may be reproduced in any form, or referred to in any other publication, without express written permission of Mirae Asset Global Investments (Hong Kong) Limited.