China Company Transformation Indicator

In our 2024 China Company Transformation Indicator (CCTI) we investigated the top pharmaceutical companies in China. As expected, half of these are foreign multinational corporations (MNCs), but we also saw a dozen innovative national pharmaceutical and biotech companies entering the ranks as well as six traditional Chinese medicine makers. In our study (our methodology) we look at 44 variables across eight factors, ranking from investors’ expectations of future growth and pharmaceutical pipeline factors to early innovation results in the Chinese market and business robustness.

Today, it’s no surprise that the top 10 pharmaceutical companies in China are all foreign MNCs except Hengrui, the Chinese company that is making all the right moves to make it a contender in the global pharma sector. Pfizer, Roche, and AstraZeneca lead the pack. Compared to global rankings of the Future Readiness Research Center at IMD, the same three top performers are also in the global top five.

This is partially a function of companies like Pfizer, which are on a global hunt for new, innovative medicines while controlling costs. The solution to this often involves partnering up with strong national players. The most important factors driving their success in China are early innovation results for Chinese patients and business diversity, followed by pharmaceutical pipeline factors and ESG efforts in China. Interestingly, the CCTI indicates that each of the top performers is investing in the future – in most cases at the expense of short-term business robustness and investor expectations.