TIME:December 12, 2022
Source: Medicine Economic Reporter

 

At 8:30 a.m. on November 10, Lu Xianping drove from Shenzhen to the Phoenix City Hotel in Guangzhou, the venue of the 23rd National Pharmaceutical Economic Information Conference. As a special guest, he was scheduled to speak the following day on the state of biopharmaceutical innovation in China. Arriving a day early, he explained simply: he didn’t want to miss “such a valuable opportunity to learn from and exchange ideas with industry peers.”

 

Humble and courteous at first impression, Lu’s calm demeanor conceals a deeply competitive spirit. A veteran “fighter” with more than two decades of experience in biopharmaceutical R&D, he has consistently focused on—and pushed forward—the development of innovative drugs in China. In his view, meaningful progress in the industry requires institutional support. As it stands, a sustainable ecosystem for biopharma innovation has yet to fully take shape, and misconceptions about innovative drug development persist in China.

 

Fortunately, in a field fraught with risk, this thoughtful and action-oriented “fighter” has not become a casualty. Since founding Chipscreen Biosciences in 2001, Lu and his company have weathered significant challenges over more than a decade and emerged stronger. Many in the industry regard Chipscreen’s success as a rare and difficult-to-replicate outcome. After ten years of forging its “blade,” the company has begun to show its edge—while continuing to pursue excellence.

 

A Difficult Start

After 12 years in the United States working in innovative drug R&D, Lu’s decision to return to China in 2000—leaving behind his family—may, in hindsight, seem like the right one. But his choice was far from accidental. At the time, China’s growing emphasis on biotechnology and a nascent wave of investment in the sector caught his attention. Then serving as Director of Research at Galderma’s North America R&D Center, Lu decided to visit China and assess the landscape firsthand.

 

That trip changed the course of his life. He found that China’s innovative drug sector was virtually nonexistent, with domestic pharmaceutical companies overwhelmingly focused on generics. To Lu, this represented a compelling opportunity. Conversations with local investment firms—many of which showed strong interest in biotech—further strengthened his resolve to return and start a company.

After securing $6 million in funding, Lu recruited several experts in biotechnology and pharmaceutical R&D from the United States, and together they began developing innovative drugs in China. Chipscreen Biosciences was officially established in early 2001. At the time, raising such a sum domestically for innovative drug development was remarkable—and remains challenging even today. In the early 2000s, venture capital favored internet companies; even now, investors often prefer lower-risk CRO firms or generics companies with strong commercial capabilities.

 

While Chipscreen’s founding proceeded smoothly, challenges soon followed as operations deepened. In its early years, the company faced significant obstacles in areas such as regulatory filings and clinical trials—many stemming from an underdeveloped pharmaceutical regulatory system in China.

“Aspects of China’s regulatory framework differ significantly from those overseas, particularly in policies and laws governing innovative drug development,” Lu noted. “This is a highly regulated industry. Without a sound legal framework, it is difficult for the sector to develop in a healthy and efficient way.”

 

To improve the environment, Lu frequently spoke at forums and conferences, raising concerns with government officials and regulatory bodies, and sharing his views through the media. His efforts contributed, to some extent, to improvements in China’s drug development ecosystem. While challenges remain, meaningful progress has been made.

 

A Decade of Growth

As China’s environment for innovative drug development gradually improved, Chipscreen Biosciences also made significant strides over the past decade. The company independently developed an integrated drug innovation and early evaluation system based on chemical genomics. This platform effectively integrates advanced technologies—including computer-aided drug design, combinatorial chemistry, high-throughput and high-content screening, gene expression profiling, bioinformatics, and cheminformatics data mining—and is now recognized as a key approach in global drug discovery. It helps accelerate small-molecule innovation while reducing development risks.

 

Over years of market exploration, Lu developed a strategy aligned with global drug development practices while adapting to China’s realities: retain commercialization rights in China while licensing patents to international pharmaceutical companies and pursuing joint global clinical development. This approach enables faster domestic commercialization while opening pathways for Chinese-origin drugs to enter global markets.

 

Despite ongoing challenges in regulatory approval and clinical development, Chipscreen achieved major breakthroughs under Lu’s leadership in R&D, intellectual property, and business development. Over the past decade, two of its original drugs have advanced into Phase III clinical trials, while another has entered Phase II trials in the United States. These programs have demonstrated expected profiles in efficacy, safety, and differentiation. The company planned to submit its first New Drug Application (NDA) in China the following year.

 

In March of that year, its innovative drug chidamide was selected for the National “11th Five-Year Plan” Major Scientific and Technological Achievements Exhibition—marking a significant milestone for the company’s 10th anniversary.

 

After a decade of effort, Chipscreen has become a leading domestic company in the development of patented small-molecule innovative drugs. Lu noted that the company has established a sustainable pipeline spanning oncology, metabolic diseases, and autoimmune disorders—from early research to late-stage clinical development—and has been profitable since 2007.

 

“Our R&D capabilities, support from shareholders, and increasing backing from government at all levels in recent years give us strong confidence in the future,” Lu said. “In terms of technology, mindset, and execution, Chipscreen has brought transformative change to innovative drug development in China.”

 

In Conversation with Lu Xianping

 

“I genuinely enjoy the scientific challenge.”

 

Medicine Economic Reporter: Chipscreen has been established for 10 years. What were the main challenges you and your team faced on the path of independent innovation? Looking back, how do you view your decision to return to China?

 

Lu Xianping: Over the years, we’ve faced continuous challenges, but we’ve also received support from many sources and kept moving forward. Fundamentally, the biggest challenge is that existing systems and mechanisms were built to serve manufacturing—not innovation or economic transformation. As for my decision, I wouldn’t say I’m fully satisfied, but I certainly don’t regret it.

 

Medicine Economic Reporter: Many returnees who previously worked in R&D abroad have chosen to join CRO companies after coming back to China. Why is that, and what does it reflect about China’s innovative drug landscape?

 

Lu Xianping: On one hand, it reflects the reality that original innovation often does not yield reasonable economic returns, so many researchers need to go through CROs to accumulate resources. On the other hand, it shows a shortage of high-level, multidisciplinary talent capable of true innovation. More broadly, it indicates that a healthy innovation ecosystem has yet to form. For the foreseeable future, generics will likely remain dominant.

 

Medicine Economic Reporter: Recently, many multinational pharmaceutical companies have shut down R&D centers in Europe or relocated them to China. Will this accelerate talent return? What changes are needed in China’s approach to talent recruitment?

 

Lu Xianping: It will likely accelerate the return of talent. But China should avoid recruitment driven purely by numbers or short-term performance metrics—we need to guard against superficial or inflated efforts.

Medicine Economic Reporter: As a returnee yourself, you and your team chose to start from the very beginning of drug discovery and ultimately develop differentiated drugs. What belief drives you?

Lu Xianping: One defining trait of our team is that we see biomedical research and addressing clinical needs as part of our lives. We genuinely enjoy these scientific challenges. Whether in China or abroad, this is the work we choose to do.

 

Medicine Economic Reporter: In recent years, returnee talent has flowed back across R&D, management, and even marketing. How has this trend evolved, and what does it reveal about China’s pharmaceutical industry?

 

Lu Xianping: The impact has been profound. Returnee talent has brought transformative changes in technology, mindset, and practice. While the gap with developed countries hasn’t narrowed significantly, China has gone from zero to meaningful progress in areas such as innovative drugs, APIs, formulations, IP, and financial transactions in biotech—and continues to advance. Meanwhile, modern pharmaceutical marketing, centered on academic promotion, has also developed its own strengths.

 

Behind Lu’s refined and composed exterior lies a competitive drive. After more than 20 years in biopharmaceutical R&D, he continues to advocate for and advance innovative drug development in China. He believes that real progress in the industry depends on institutional support—and that while much has improved, building a truly sustainable innovation ecosystem remains an ongoing challenge.