China's Pharma Companies Turn To Europe For Growth

(MENAFN- Swissinfo) China has emerged as a powerhouse of biotech innovation, but local firms still face a steep climb toward financial stability and global growth. Swissinfo spoke with three Chinese companies navigating these hurdles as they set their sights on Europe. This content was published on September 3, 2026 - 09:00 10 minutes

I report on the Swiss pharmaceutical industry and healthcare topics such as access to medicine, biomedical innovation, and the impact of diseases like cancer. I grew up just outside San Francisco and studied international affairs with a focus on development economics and healthcare policy. Prior to joining SWI swissinfo in 2018, I was a freelance journalist and a researcher on business and human rights.

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At this year's Swiss Biotech Day in Basel in May, 12 Chinese companies – nearly double last year's number – attended with the support of the China hub of Swiss Global Enterprise, the official government export and investment organisation. At least another 15 Chinese firms took part at their own initiative.

This surge comes as Western giants like Roche and Novartis sign a record number of deals to license drug candidates from Chinese biotechs. Once known for copy-cat drugs, Chinese companies now account for 30% of clinical trial starts – up from 1% in 2009, according to healthcare analytics firm IQVIAExternal link.

However, with dwindling domestic venture capitalExternal link, intense local competition, and rising US scrutinyExternal link, many Chinese companies are looking at opportunities in Europe. Many came to Basel to burnish their credentials outside China and prove they can be trusted partners.

Here, three executives share their journey to the global stage.

Canton Biologics – standing out from domestic competitors

For Xiao Shen, the next three years will be critical for his company's international growth. Some 40% of its total revenue now comes from overseas, but Shen's goal is to bring that closer to 80% by 2028.

To get there, he and his management team are actively looking for global partners. Swiss Biotech Day is one of more than ten conferences they are attending in Europe and the United States in a span of six months.

Shen is the founder and CEO of Canton Biologics, a Contract Development and Manufacturing Organisation (CDMO) in southern China. CDMOs serve an essential role in the pharma supply chain. Drug companies often hire them before clinical trials to handle design, formulation, laboratory development, and manufacturing.

Switzerland is home to Lonza, the world's largest CDMO in the world by revenue, founded over 125 years ago. China is now teeming with CDMOs, such as WuXi AppTec, that have been built on the country's industrial strength. A 2024 surveyExternal link of 124 biopharma firms found that 79% of them have at least one contract or product with a China-based or -owned CDMO.

Policy changes in the Asian country starting in 2015 that allow drug developers to outsource manufacturing helped to fuel the rise of CDMOs. That's when Shen started Canton Biologics, which specialises in complex biological products that Shen says he can deliver with“speed, quality, flexibility, and cost competitiveness”.

Chinese investors gave Shen seed funding in 2016 to start the company. Since then, he has raised over $40 million (CHF32 million) in three rounds through 2023.

But domestic venture capital for biotech fellExternal link 73% to $4.2 billion in 2024, down from a peak of $15 billion in 2021, amid slowing economic growth. Meanwhile competition from home-grown companies has intensified.

“There's huge competition everywhere in almost every industry in China,” said Shen.“This puts people under pressure.”

Expanding the company's global client base is essential for growth. Just under half of Canton Biologics' more than 100 clients are domestic.

While most Chinese CDMOs target the US, this strategy is becoming increasingly risky as the US imposes more restrictionsExternal link on contracts with Chinese biotech companies over national security concerns.

Shen aims to carve out a niche with European clients, which is why he is in Basel. He feels well positioned to build trust in Europe and stand out from other Chinese companies because of his experience on the continent.

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