Junshi: From Domestic Breakthroughs to Global Strategy in Biopharma

Junshi Pharmaceuticals was founded in 2012 in Shanghai by five technical professionals formerly employed at multinational pharmaceutical companies, with the goal of developing first-in-class and best-in-class drugs for China. Junshi benefited from new policy changes by securing clinical trial approval 1-2 years earlier than anticipated, ultimately launching China's first domestic PD-1 drug, Toripalimab, in 2018. Beginning in 2019, China implemented a Volume-Based Purchase (VBP) policy, requiring drug prices to be reduced by at least 60% before gaining entry to the NMIS Catalogue necessary for access to public healthcare institutions. Junshi joined the Catalogue after a year of hesitation but did not turn a profit as a result. Meanwhile, the company continued to diversify its pipeline beyond oncology, placing high hopes on JS010 for migraine treatment. However, JS010, which also follows a fast-follower strategy, appeared likely to face a similar outcome as Toripalimab. Junshi's management believed entering the U.S. market might offer a solution to their current challenges, though the company would face a markedly different policy framework and competitive landscape. The deteriorating U.S.-China relationship added further uncertainty to the U.S. government's stance on Chinese pharmaceutical firms. Was Junshi truly ready to go global?