In stark contrast to the US, Chinese investors are accelerating funding for early-stage cell and gene therapies, which now account for 29% of seed/Series A rounds. These firms are specifically backing technologies like NK cell therapies, which have fallen out of favor in the West, creating a divergent global innovation strategy.

Despite strong efficacy data, the drug DV-Toripalimab scored lower than a competitor (2.5 vs 3.0). Experts attribute this confidence gap to its Phase 3 trial being conducted only in China, which raises generalizability concerns and reflects a lack of hands-on experience for Western physicians.

China is no longer just a low-cost manufacturing hub for biotech. It has become an innovation leader, leveraging regulatory advantages like investigator-initiated trials to gain a significant speed advantage in cutting-edge areas like cell and gene therapy. This shifts the competitive landscape from cost to a race for speed and novel science.

Rather than moving through distinct lines of therapy, a future strategy could involve an "ADC switch." When a patient progresses on an ADC-IO combination, the IO backbone would remain while the ADC is swapped for one with a different, non-cross-resistant mechanism, adapting the treatment in real-time.

The differing efficacy and toxicity profiles of TROP2 ADCs like sacituzumab govitecan and Dato-DXD suggest that the drug's linker and payload metabolism are crucial determinants of clinical outcome. This indicates that focusing solely on the target antigen is an oversimplification of ADC design and performance.

Morgan Stanley projects a dramatic increase in China's contribution to global medicine, with assets developed in China expected to represent about a third of all new US FDA approvals by 2040, a significant rise from just 5% today.

Experts believe the stark difference in complete response rates (5% vs 30%) between two major ADC trials is likely due to "noise"—variations in patient populations (e.g., more upper tract disease) and stricter central review criteria, rather than a fundamental difference in the therapies' effectiveness.

China is poised to become the next leader in biotechnology due to a combination of structural advantages. Their regulatory environment is moving faster, they have a deep talent pool, and they can conduct clinical trials at a greater speed and volume than the U.S., giving them a significant edge.

The next decade in biotech will prioritize speed and cost, areas where Chinese companies excel. They rapidly and cheaply advance molecules to early clinical trials, attracting major pharma companies to acquire assets that they historically would have sourced from US biotechs. This is reshaping the global competitive landscape.