Chinese Expats Revolutionizing China's Homegrown Biopharma Sector

Chinese expats inundated the pharma and biotech sector in the early 2000s, but fifteen years later, most of that demographic has returned to China to start their own businesses. An informal group that met in San Jose in 2001 for networking opportunities is now an exclusive group called BayHelix, which has more than 300 senior executives in the Chinese biopharma market as active members, Bloomberg reported.

Hai Gui, or "sea turtles," is the name given to these entrepreneurial individuals determined to change the life sciences landscape of China. China is the second-largest drug market in the world behind the United States. The country spent $115 billion in 2015, and predictions speculate this number could reach $190 billion by 2020. The Communist Party has passed legislation to make bio tech and pharma start ups an attractive venture. The companies are eligible for tax incentives and rent subsidies, and their products are subject to expedited regulatory approval.

Chinese students make up almost a third of all foreign students in the United States, and these graduates are giving up stable, well-paying jobs at large corporations, such as AstraZeneca plc (ADR) AZN and Pfizer Inc. PFE, for lucrative start-up opportunities back home. Chinese companies even have some advantages over their U.S. competitors. The total cost to bring a drug to market in China is $50 million versus US company's cost of $4 billion. Furthermore, the wealth of venture capitalist money flowing through the country will boost the sector enormously.