1、MGlobal InsightGlobal BiopharmaChina Biotech:Innovation DawnThe global biotech sector is at a pivotal moment as China transitions from traditional generics manufacturing into the global innovation ecosystem.By 2040,we project China-originated assets to represent 35%of US FDA approvals.We see signifi

2、cant implications for the global biopharma industry.Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research.As a result,investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research.Investor

3、s should consider Morgan Stanley Research as only a single factor in making their investment decision.For analyst certification and other important disclosures,refer to the Disclosure Section,located at the end of this report.+=Analysts employed by non-U.S.affiliates are not registered with FINRA,ma

4、y not be associated persons of the member and may not be subject to FINRA restrictions on communications with a subject company,public appearances and trading securities held by a research analyst account.August 26,2025 10:24 PM GMTMGlobal Insight2The biotech balancing act:Chinas ascent and the glob

5、al innovation equation.In the shifting landscape of global biopharma,a new axis of innovation is emerging and its pointing east.China,long known for its generics manufacturing,is now poised to become a force in drug discovery and development.We believe that China-originated assets could account for

6、35%of US FDA approvals by 2040,up from just 5%today,generating an estimated US$220 billion in ex-China revenue.China biotech is no longer merely a regional story.From generics to global leadership.Chinas biotech sector has reached a pivotal inflection point.Fueled by a narrowing innovation gap,regul