The 2025 Government Work Report was officially released, once again placing the pharmaceutical sector at the center of policy focus. From supporting innovative drug R&D to promoting high-quality development of traditional Chinese medicine (TCM), from fostering the biomanufacturing industry to piloting foreign investment access, the policy measures directly address industry pain points.

Ten Key Policy Highlights for Biopharma in 2025:

1. Drug Centralized Procurement – Optimize centralized procurement policies, strengthen quality evaluation and supervision to ensure safer medication for the public.

2. Drug Pricing – Improve drug pricing mechanisms; link prices to costs and efficacy, curb unreasonable price hikes, and reduce patient burdens.

3. Drug Traceability – Establish a comprehensive traceability system for drugs and medical consumables. Implement full-process QR code tracking from production to distribution, cracking down on "recycled drugs" and counterfeit products.

4. Innovative Drug Catalog – Create an innovative drug catalog to support R&D, identifying priority review candidates with tax incentives, R&D subsidies, and other dedicated support.

5. Biomanufacturing Industry – Establish a growth mechanism for future industries, nurturing biomanufacturing, quantum technology, and other emerging fields. Support synthetic biology, bio-based materials, and related sectors.

6. Biotech Pilot Programs – Launch open pilot programs for biotech; streamline approval processes for cutting-edge therapies like gene and cell therapies, aligning clinical trials with international standards. Allow qualified foreign firms to participate in segmented biopharmaceutical production pilots.

7. High-Quality TCM Development – Improve mechanisms for TCM inheritance and innovation, advancing high-quality development of TCM healthcare and industry. Build a database of classical prescriptions, standardize TCM formula granules, and support traceable herbal medicine cultivation bases.

8. Foreign Investment – Multinational pharma R&D centers in China will receive equal policy support as domestic institutions. Promote orderly openness in biopharma, allowing eligible foreign firms to join segmented biopharmaceutical production pilots. Refine policies to facilitate faster innovative drug approvals, optimize volume-based procurement, and enhance predictability in medical device procurement.

9. Green Transition – Accelerate green and low-carbon economic development. The report sets a 3% reduction in GDP energy intensity, pushing pharma firms to adopt greener practices: stricter oversight of high-energy processes (e.g., API production), pharmaceutical wastewater, hazardous waste, and coordinated management of new pollutants as compliance redlines.

10. Drug Regulation – Strengthen supervision in key areas, including centrally procured drugs, contract-manufactured drugs, and online sales.