Following disruptions in the second quarter from lockdowns around China, major Chinese firms BeiGene and Junshi reported strong double-digit sales gains for anti-PD-1 antibodies in the third quarter. Revenues at others including Hengrui, Zai Lab and Allist also shone during the period.

After slashing the prices of their blockbuster drugs to gain wider patient access through China's main reimbursement program, multinationals are now beginning to face increasing challenges from local competitors.

November negotiations in China over the prices of 67 new drugs have resulted in record price cuts, averaging around 62% overall and 65% for anti-tumor products. But the sting is alleviated by the prospect of substantial volume increases.

China's top regulator grants approvals to a record number of novel drugs, including multiple oncology products from domestic companies, which are increasingly shifting to innovation, supported by positive regulatory changes over the past few years.