Chilly spring winds blow—listen as entrepreneurs share insightful, "prescription"-like advice.

　　Whether it’s the "capital winter" or the industry’s periodic adjustments, promising emerging technologies continue to be highly regarded by the capital market. Despite challenges like crowded target landscapes or intense internal competition ("involution"), innovation remains the core driving force behind the growth of the pharmaceutical sector. Last night, in PharmaCube’s livestream studio, Dr. Yu Qiang, CEO of Shengshi Taikang, joined forces with Dr. Xie Yuli, CEO of Weijing Bio, and Dr. Yang Yun, Co-founder and CTO of Huanma Bio, to explore how cutting-edge biotech advancements can inspire and shape R&D and investment strategies in China. Let’s dive into their innovative insights through the video and text below.

　　Here are excerpts of insights shared by the experts during the livestream—let’s dive in together:

　　Against the global backdrop of accelerating aging, particularly in China, what breakthroughs can we anticipate in the future of drug development—driven by the unmet clinical need for chronic disease management?

　　 Yu Qiang : Diabetes affects nearly 500 million people worldwide, with 120 million diagnosed in China alone. Additionally, nearly 36% of adults in the country are considered pre-diabetic. From the discovery and application of insulin a century ago to today’s three major classes of diabetes medications—besides metformin and insulin—namely DPP-4 inhibitors, SGLT-2 inhibitors, and GLP-1 receptor agonists, this evolution itself reflects an ongoing process of innovation and improvement in chronic disease management. When we discuss the future of drug development for diabetes, it’s crucial first to deepen our understanding of the disease itself, as that’s the only way to identify unmet clinical needs. At the same time, as human society progresses and living standards improve, treatment options for diabetes patients must also evolve accordingly. This is precisely what drives and defines our mission in innovative drug research and development. After all, having benefited from effective treatments for over a century, the field has accumulated a vast array of pharmaceutical options—so many, in fact, that they can overwhelm patients, leading some to view diabetes drug development as a fiercely competitive "red ocean." Yet, as the ancient saying goes: "If you renew yourself each day, you will continue to grow anew every day." (from *The Great Learning* in the *Book of Rites*).

　　We’ve all heard of the "three highs" associated with chronic diseases, but in China, diabetes also has its own "three lows": low awareness, low treatment-seeking behavior, and poor blood sugar control. When you combine these three factors, the number of diabetic patients in China who are actually managing their blood sugar effectively remains below 5%. Moreover, it’s unfortunately worth noting that recent research indicates Chinese individuals belong to a genetically predisposed population for diabetes. Compared to Caucasians (Europeans and Americans), Asians like us face a 60% higher risk of developing the disease. With such a large diabetic population—and an even greater number of patients suffering from diabetes-related complications—drug developers can no longer focus solely on lowering blood sugar as the primary goal for the next generation of diabetes treatments. Instead, we must also address the broader spectrum of secondary conditions and complications that often accompany the disease.

　　Obesity, diabetic nephropathy, and non-alcoholic fatty liver disease—specifically, non-alcoholic steatohepatitis (NASH)—are closely linked. In fact, 65% to 70% of people with diabetes also suffer from non-alcoholic fatty liver disease. As NASH progresses, it can lead to more severe liver damage, making it a significant $45 billion market—with the critical caveat that currently, there are still no truly effective treatments available. From the perspective of glucose metabolism, NASH develops primarily due to subtle cellular dysfunction triggered by chronic hyperglycemia. During glycolysis, glucose is broken down through cellular respiration to produce pyruvate, which can then be converted into acetyl-CoA, ultimately driving the synthesis of fatty acids. When these fatty acids accumulate excessively in the liver, they contribute to increased body fat—and this, in turn, represents one key mechanism by which elevated blood sugar levels promote the onset of NASH. However, emerging research suggests that regulating glucose metabolism could be a crucial therapeutic strategy for managing non-alcoholic fatty liver disease. Beyond glucose metabolism, other metabolic pathways—including lipid metabolism, bile acid regulation, and cholesterol homeostasis—also hold promise as potential targets for treating both non-alcoholic fatty liver disease and its inflammatory counterpart, NASH.

　　In short, as an innovative pharmaceutical R&D company, there’s a clear market demand from patients—precisely the kind of challenge we’re well-equipped to tackle. Let’s work together to address these critical issues.

　　Which of the world's most groundbreaking cutting-edge technologies from that year can China soon translate into tangible product development and practical applications?

　　 Xie Yuli The biomedical field is witnessing rapid advancements in new technologies—ranging from small and large molecules to cutting-edge areas like gene and cell therapies, as well as nucleic acid-based drugs, which are now flourishing and continuously propelling the pharmaceutical industry forward. However, when it comes to researching these emerging technologies, the toughest challenge isn’t identifying the right direction—it’s mastering the precise timing required to translate groundbreaking innovations into viable, real-world entrepreneurial ventures. For instance, in the field of nucleic acid drugs, venturing into this space or investing back in 2013 could have led to total financial ruin. Yet today, pursuing opportunities in this area feels almost effortless and naturally aligned with current market dynamics.

　　New technologies in the small-molecule drug field represent a deep evolution of traditional approaches, paving the way for rapid development and commercialization of innovative products—such as molecular glue technology, which is already making waves in clinical applications. Building on this foundation, PROTAC technology, an exciting extension of molecular glue, is poised to deliver tangible product outcomes in the near term. In the realm of large-molecule drugs, advancements from established platforms like monoclonal and bispecific antibodies have naturally led to the emergence of cutting-edge technologies such as ADCs, which are now at the forefront of the industry. These relatively mature innovations are almost certain to translate into market-ready products within the next few years. However, when it comes to even more groundbreaking technologies—like mRNA therapies or gene-editing tools—while their potential is undeniably immense, timing remains a critical factor. The real focus here isn’t necessarily on achieving immediate product launches but rather on laying the groundwork for robust, platform-based capabilities. By steadily investing over the next five to ten years, companies can build strong, proprietary intellectual property assets that create formidable competitive advantages—what we might call an "impenetrable moat." Only then, when the right opportunities arise, will these pioneering technologies truly unlock their full transformative potential, driving remarkable breakthroughs and growth.

　　Many cutting-edge technologies abroad are rooted in university research—results of close collaboration between academia, industry, and government. What insights can overseas experiences offer to foster and enhance domestic industry-academia-research partnerships?

　　 Yu Qiang "This question instantly transported me back to the days described in the line 'In youth, my spring coat was thin—as I rode my horse leaning against the crooked bridge.' Let me first share what I’ve observed in America."

　　(1) American doctoral students can describe their chosen field of study with the single word "passion." They could have easily pursued careers in fields like finance or law—professions that offer prestigious attire and lucrative incomes. Yet, if they opt for chemistry, a field often labeled as "arduous, messy, exhausting, and dangerous"—without genuine passion, how could they possibly endure? And even if they do stick with it, how could they possibly thrive or make it truly rewarding?

　　(2) These elite individuals—those who are passionate about scientific research and have managed to thrive within the professor-selection system—have become the mainstream of academic research at U.S. universities. With talented researchers in place, they’ve also secured crucial funding sources, including the NSF National Science Foundation, NIH National Institutes of Health, and grants obtained from family and patient advocacy organizations/ foundations. These financial resources, in turn, help shape the direction of their research. Driven by a relentless pursuit of academic excellence and rigorous peer review, their research outcomes consistently rank among the best in the field—many of which even lead to groundbreaking, cutting-edge technologies ready for practical application.

　　(3) Next, the U.S. is a highly commercialized nation, and American universities actively encourage professors to turn their research findings into marketable innovations. This process of research commercialization typically takes two main forms: one is directly licensing patents to companies, while the other involves leveraging cutting-edge technology as a platform to launch tech startups. But what has left the deepest impression on me is that, regardless of which approach is adopted abroad, everyone plays their designated role—professors focus solely on the research outcomes and generally stay out of day-to-day business decisions, leaving operational responsibilities to professional managers. Meanwhile, professors continue to dedicate most of their energy to advancing scientific research. This arrangement creates a virtuous cycle, ensuring continuous innovation and technological advancement. As a result, both academic pursuits can thrive in greater depth, and companies enjoy sustained growth, ultimately benefiting everyone involved.

　　(4) Actually, after saying all this, I’ve already addressed how overseas experience can inspire domestic industry-academia-research collaboration. Let me summarize it briefly using four letters: DDDD. At its core, it’s simply about everyone fulfilling their own roles while working together for mutual success.

　　 Yang Yun After 2018, significant changes have taken place in China’s industry-academia-research collaboration and technology transfer: First, a growing number of researchers returning from overseas have become more focused on protecting their intellectual property rights—and are now eager to bring their innovations to the market. Second, at the national level, efforts have been ramped up to organize training programs for these researchers, helping them better understand what kinds of technologies the market truly needs. Finally, over the past two years, capital markets have increasingly shown strong confidence in the development of cutting-edge technologies. Together, these three factors are now propelling China’s biopharmaceutical industry closer than ever to global leaders in advanced technological innovation.

　　 Xie Yuli Currently, governments, businesses, and capital stakeholders all recognize that the biopharmaceutical industry needs differentiated innovation—but the key question remains: how exactly should this be done? Here are two thoughts I’d like to share:

　　(1) The biopharmaceutical industry abroad has undergone decades of steady growth, during which clear patterns have emerged. Typically, breakthroughs in basic research originate from academic institutions and universities, are then translated into practical applications by innovative biotech companies, and finally picked up by major pharmaceutical giants—creating an effective relay system. In the past two years, China has begun to emulate this model, yet the imitation often remains superficial rather than deeply rooted. As General Manager Yu Qiang just mentioned, professors overseas remain highly focused on their specialized research areas and rarely get involved in the day-to-day operations of companies. In contrast, in China, professors typically take direct hands-on roles themselves. Thus, as we draw inspiration from global best practices, it’s crucial that we thoroughly understand and internalize the underlying principles driving these successful models. This is precisely what deserves our careful reflection and systematic summarization.

　　(2) We also need to consider: What exactly is the relationship between basic research and original innovation? Is the lack of originality in China’s biopharmaceutical industry simply due to insufficient basic research? I don’t agree. While basic research certainly plays a crucial role in fostering industry-wide innovation, it isn’t necessarily a prerequisite for individual companies to achieve breakthroughs. For instance, last year Amgen received approval for the world’s first cancer treatment targeting KRAS mutations—a milestone that built on foundational research published decades ago, which companies can now readily build upon. Beyond basic science, we should also reflect on whether the industry’s investment environment and innovation ecosystem are truly aligned to support sustained progress.
　　
　　Currently, domestic drug targets are heavily concentrated, leading to intense "involution." As new drug development shifts from a "fast-follow" or "me-too" approach toward a more clinical-demand-driven focus on quality and differentiation, how can innovative pharmaceutical companies break through this challenging landscape?

　　 Yu Qiang "Seeking stability often leads to homogeneity, while pursuing innovation typically involves greater risk. This is simply the nature of capital—and yet, innovative pharmaceutical companies absolutely rely on capital to drive progress. So, how do we strike a balance between stability and innovation within our company’s internal projects? And how can we align with investors to achieve an optimal balance between risk and reward? In fact, your question already provides part of the answer: by focusing on quality, differentiation, and—crucially—innovation itself. This innovation stems from our company’s relentless pursuit of cutting-edge technologies, as well as the collaborative efforts between industry, academia, and research institutions. That said, personally, I wouldn’t advise an entirely innovative approach for a drug development company, as the risks are simply too high. After all, if a project falters, it could seriously disappoint both investors and employees. That’s precisely why finding that delicate balance is so critical."

　　So, the stability-seeking approach refers to the quality enhancement and differentiation mentioned by the host—both of which can be achieved through a robust technology platform, provided we take a calm, focused, and thorough approach to in-depth research. For instance, when it comes to developing small-molecule targeted drugs, many companies are working on the same therapeutic target, and some of these targets may already have approved products available overseas. In such cases, could we leverage advancements in academic research, cutting-edge technological tools, and insights gained from the clinical use of existing drugs? By delving deeper into the target itself—perhaps by improving selectivity or even exploring additional therapeutic applications—we can achieve true differentiation in our drug development efforts.

　　 Yang Yun "Developing innovative drugs certainly comes with significant risks—especially for startups, which must first ensure their own survival. So, how can we minimize those risks? First and foremost, as a biotech company, our greatest strength lies in our core technology. By leveraging our proprietary tech platform and collaborating with other pharmaceutical firms, we can address the real-world challenges they face in clinical development—ultimately helping them identify promising lead molecules that boost the market value of our products. At the same time, we should also proactively target cutting-edge, globally innovative drug targets, showcasing our company’s ability to drive true innovation. In essence, for early-stage companies, it’s crucial to learn how to "walk on two legs": balancing risk mitigation with strategic, forward-thinking growth."

　　 Xie Yuli "Our understanding of life sciences is merely the tip of the iceberg, which means the probability of successfully developing truly innovative drugs is inevitably very low. To address this, we need to learn from the experiences of Europe and America and gradually build a robust ecosystem that provides the necessary support. That’s not to say that companies pursuing a 'fast-follow' strategy are doing something wrong—on the contrary, relentlessly chasing only originality and being ‘first in class’ isn’t just risky; it could even amount to harming patients in clinical trials."

　　Faced with rising upstream costs and pressure from downstream healthcare insurance policies, what additional new measures should domestic innovative pharmaceutical companies adopt?

　　 Yu Qiang "This is a matter of personal opinion—my take is, why should domestic innovative pharmaceutical companies be expected to help expand the survival space for upstream and downstream players? Didn’t we agree to tackle these challenges together?"

　　Enough with the complaints—let’s get to the point. Our innovative pharmaceutical companies embody both proactive and reactive forms of innovation. Driven by a patient-centric approach and guided by real patient needs, we’re developing cutting-edge treatments. This includes not only entirely new therapeutic approaches but also enhancements to existing ones—such as improving treatment adherence for patients. While many may immediately think of exporting innovative drugs overseas, remember that true innovation is the key prerequisite for successful global expansion. Once you’ve achieved genuine breakthroughs, you’ll naturally gain the ability to set your own pricing strategies—even in the domestic market. And if your innovations genuinely address unmet clinical needs, they’ll undoubtedly deliver substantial profits as well.

　　 Xie Yuli :The payment side is a critical link in the business feedback loop. While helping patients access affordable, innovative medicines through healthcare insurance price controls is exactly what pharmaceutical companies most want to see, setting prices too low—beyond what’s objectively sustainable—will inevitably undermine the industry’s ability to continuously innovate in the long run. Ultimately, this will harm not only the industry itself but also patients who rely on these life-saving treatments.

　　Increased upstream costs are a natural outcome of market dynamics, as pharmaceutical companies inherently compete with one another. Moreover, the growing number of companies offering similar products inevitably leads to tighter resource availability—a situation where the market will eventually self-regulate. However, the pharmaceutical industry has unique characteristics of its own, so policymakers are advised to proceed with greater caution. After all, this "invisible hand" of the market must operate with a long-term perspective, ensuring the industry’s sustainable and stable growth while promoting overall health and stability.

　　What are your thoughts and predictions regarding the overall development trends in China's innovative pharmaceutical sector over the next few years, especially in light of the "capital winter" of 2021?

　　 Yu Qiang First, let’s clearly distinguish whether capital is being used for investment or speculation. I believe the current frenzied short-term speculation is gradually shifting back toward long-term value investing. After all, a year naturally has its four seasons—spring, summer, autumn, and winter—and overall, I remain highly optimistic about the trajectory of China’s innovative pharmaceutical industry. Just consider this: from the early 21st century, when China first began developing truly groundbreaking, innovative drugs, to today—it’s been barely 20 years, yet the pace of progress has already been remarkably fast. At the same time, we must recognize that the nation remains steadfastly committed to supporting domestically driven biopharmaceutical innovation. From the major “New Drug Creation” initiative launched during the 11th Five-Year Plan to the most recent 14th Five-Year Plan, where this commitment has been explicitly reaffirmed. That’s why I’m confident that the so-called “capital winter” we’re seeing now is actually a necessary adjustment period for the industry to mature further. With the government continuing to foster innovation and amid favorable policies like healthcare reform aimed at optimizing resource allocation, coupled with the growing influence of capital focused on long-term value creation, we can expect even more cutting-edge scientific breakthroughs to be widely adopted in the near future. The prospects for our industry have never looked brighter.

　　 Yang Yun "Over the past two years, every industry has been navigating a capital winter—though the biopharmaceutical sector has experienced even greater volatility compared to before. Personally, I believe that companies should prepare for tough times ahead over the next 2 to 3 years, especially when it comes to building up their talent reserves. While there’s still a shortage of local expertise in China’s new drug development field, the pandemic has sparked growing interest among talented individuals eager to join this dynamic industry, helping to gradually build a stronger talent pool. As a result, in the next 5 to 10 years, biopharmaceuticals will remain a promising and vibrant track, attracting both entrepreneurs and investors who are poised to make significant strides and achieve remarkable success."

　　 Xie Yuli First, the biopharmaceutical industry remains one of the most promising sectors, with a clear trajectory over the next decade—especially as major public health crises continue to accelerate its growth. Second, the capital markets have played a significant and objective driving force behind the industry's advancement over the past two years. For instance, China’s PD-1 monoclonal antibody field has experienced explosive progress in both R&D and manufacturing capabilities. At the same time, this has opened up more opportunities for innovators and entrepreneurs to get involved, fostering a vibrant ecosystem of innovation and collaboration that propels the industry forward. Finally, from a technological perspective, companies must seize this moment to achieve breakthroughs that genuinely address critical clinical challenges. By doing so, they won’t only deliver meaningful benefits to patients but also generate substantial returns for investors, ultimately enhancing the intrinsic value of their businesses—and creating a self-sustaining, science-driven business loop. In conclusion, I believe that within the next 5 to 10 years, China will undoubtedly see the emergence of globally impactful, game-changing products, further igniting the industry’s rapid ascent and solidifying its position as a global leader in biopharmaceutical innovation.

　　The Mint Angel Fund focuses on investing in early-stage innovative projects worldwide. As a venture partner at the angel fund, could Mr. Yu Qiang share his investment insights for 2021, as well as highlight the specific sectors or standout companies he has invested in over the past 1–2 years?

　　 Yu Qiang No matter how the external environment changes, Mint has always adhered to the philosophy of innovation from the source. The projects and founders backed by the fund come exclusively from China’s top-tier research institutions, such as Peking University, Tsinghua University, the Beijing Institute of Life Sciences, Shanghai Jiao Tong University, and Westlake University. What these portfolio companies share in common is that their founders are leading academic figures in their respective fields, and each company boasts a groundbreaking technology platform—ranging from small-molecule targeted drugs and antibodies to cell and gene therapies, AI-driven solutions, and even cutting-edge advancements like drug delivery systems and cryo-electron microscopy. These technology platforms serve as the "sharp swords," while the industry leaders act as the skilled wielders. When the two seamlessly combine, they give rise to Mint’s ideal, high-quality investment opportunities.

　　 About Shengshi Taikе

　　Shengshi Taikang Biopharmaceutical Technology (Suzhou) Co., Ltd. was founded in 2010 in Suzhou Industrial Park. The company’s core team boasts decades of international experience across the entire lifecycle of pharmaceutical products, dedicating itself to the research, development, and commercialization of groundbreaking small-molecule innovative drugs. Leveraging an integrated drug R&D technology platform and a forward-thinking, multi-faceted business perspective, Shengshi Taikang has built a robust pipeline of Class 1 innovative drugs spanning multiple therapeutic areas, including diabetes management and cancer treatment. Notably, its phosphate-based sitagliptin is poised to fill the gap in China for original DPP-4 inhibitors, while the company’s first-ever generic version of teriflunomide—a key treatment for the rare disease multiple sclerosis—has also received market approval. Looking ahead, the company will continue to focus on unmet clinical needs both in China and globally, developing cutting-edge therapies that are not only highly accessible to patients but also deliver superior efficacy, ultimately benefiting patients worldwide.