COVID Unrest, Health Sector Deep Freeze Hits Chinese Biotechs Hard

Some Already Responding To Challenges

29 Nov 2022

Much of the biopharma and other health-related industries in China were already feeling the chill from ongoing macro-economic and other headwinds this year, which now look set to be complicated further by the added strain of social unrest over strict COVID containment policies. The combination of factors is already prompting some to take steps towards restructuring and divestments to survive.

Beijing relies on mass PCR testing to contain virus spreading in Nov. 2022 — China's COVID Zero policies, which rely on mass testing like this in Beijing, are hitting biotechs hard • Source: Shutterstock

The whole of the biopharma and health-related sector in China, from new drug developers to generic makers but with the exception of nucleic acid testing firms, is experiencing strong headwinds from a variety of socio-economic factors, with the recent public unrest in the country only serving to add to industry's challenges.

With central and local governments repeatedly vowing to stick to the current, but increasingly unpopular, "COVID Zero" policies, many cities...