Guo Guangchang: Original Innovation is the Inevitable Path for China's Pharmaceutical Industry, Open Collaboration is the Best Way to Accelerate Innovation

Today, it is a great pleasure to gather with old and new friends in Shanghai for the 3rd Pujiang Biopharmaceutical Original Innovation Conference.

Shanghai is not only a key hub for Fosun’s operations but also the birthplace of its innovation journey. From our early entrepreneurial days to now deeply integrating core industries like healthcare and smart manufacturing into the city’s development, we have always grown in sync with Shanghai, achieving mutual success. In biopharmaceuticals, Fosun Pharma has established a global R&D and operational network with Shanghai as its innovation base. We deeply appreciate Shanghai’s exceptional business environment, abundant talent pool, and comprehensive industrial chain—fertile ground for innovative enterprises.

Currently, Fosun Pharma maintains steady growth in the healthcare sector, with consistent revenue and net profit increases. Notably, revenue from innovative drugs has become a core growth driver, rising to over RMB 6.7 billion in the first three quarters of 2025, an 18% year-on-year increase. This reinforces our commitment to original innovation.

"At this pivotal moment, China’s pharmaceutical innovation is gaining global recognition like never before. We are more convinced than ever that original innovation is the inevitable path forward, and open collaboration is the best way to accelerate it."

Here are some insights on biopharmaceutical original innovation:

**Innovation Starts with Addressing Unmet Clinical Needs** With rapid technological advancements, companies must strategically allocate limited resources. Mapping out R&D directions based on clinical needs is crucial to identifying the most promising innovations—ultimately focused on efficacy, cure potential, and improving patient quality of life. Fosun Pharma’s PD-1 drug Hansizhuang has achieved a global breakthrough in gastric cancer treatment, pioneering a chemotherapy-free era. It is now available in dozens of countries, with U.S. approval in progress. Other pipeline candidates like HLX43 and HLX22 also show immense potential. Additionally, Fosun Kite’s second CAR-T cell therapy has made significant strides toward commercialization. These achievements reflect our shift from "following" to "leading" in innovation, guided by the principle of prioritizing patient benefit.

**The Future of Innovation Lies in Embracing AI** AI is transforming healthcare, and Fosun Pharma actively explores its applications. Since 2022, we have partnered with AI drug discovery firm Insilico Medicine to advance AI-driven drug development. Henlius leverages AI and physical modeling to optimize antibody and ADC drug R&D. We are also exploring AI diagnostics and AI-powered health services, building an "AI+X" smart healthcare ecosystem. AI’s disruptive potential in biopharma is vast and transformative.

**Systemic Capabilities and Open Collaboration Drive Innovation** Innovation thrives on resource integration, not isolation. Fosun’s diverse ecosystem and industrial applications enable systemic synergies, amplified through open collaboration. We deepen partnerships with global research institutions to accelerate academic breakthroughs into clinical practice. Government support—through funding and policies—further accelerates innovation via public-private-academic collaboration.

Cross-sector integration also fuels innovation. For example, Fosun United Health Insurance’s "Ruixing Bao" product embeds premium healthcare resources from Ruijin Hospital and Fosun’s digital health management into insurance services. Using smart wearables and AI-driven health platforms, it offers continuous health monitoring—effectively putting "Ruijin Hospital’s health management department" in users’ pockets. We aim to expand such collaborations with top-tier medical institutions.

**Globalization is Key to Sustained Innovation** For over three decades, Fosun has built global capabilities. We introduce cutting-edge technologies, such as the da Vinci surgical robot through our partnership with Intuitive Surgical, which also established its largest Asian R&D, production, and training base in Zhangjiang. Similarly, our collaboration with Insightec brought MR-guided focused ultrasound (MRgFUS) to China.

At the 8th consecutive China International Import Expo (CIIE), Fosun showcased global innovations transitioning from "exhibits" to "products." Beyond importing, we prioritize global expansion. Fosun Pharma has secured two out-licensing deals for wholly self-developed drugs this year, with potential total value exceeding $1 billion.

However, to compete globally, Chinese pharma must strengthen regulatory, commercial, and clinical capabilities alongside R&D. For core innovative pipelines, Fosun Pharma will build these competencies in key markets, creating a virtuous cycle where global revenue fuels further R&D. This challenging path is essential for long-term competitiveness against global pharma giants.

At this critical juncture, China’s pharmaceutical innovation is increasingly recognized worldwide. We firmly believe original innovation is the future, and open collaboration is the best accelerator. Fosun looks forward to partnering with peers, leveraging Shanghai’s innovation ecosystem, to address global patient needs and build a world-class biopharma leader rooted in China—advancing our vision of helping people live healthier, happier lives to 121.