"In the future, demand, policy, and capital will serve as the troika of China's pharmaceutical development," Fu from Bristol-Myers Squibb said.

On Nov 28, the National Healthcare Security Administration announced a total of 70 new drugs that will be included in China's national medical insurance catalog, with their prices slashed by 60.7 percent on average. During the negotiation process, for the first time, there was a situation where Chinese and foreign companies competed on the same stage for innovative drugs in multiple therapeutic areas, such as anti-HIV and anti-hepatitis C.

Market insiders said that because of the rapid rise of local innovative drugs, the monopoly position of new drugs imported exclusively from overseas in the past had been challenged.

Vivian Chen, vice-president of Corporate Affairs at Ascletis Pharma Inc, said that to transform from generic drug-dominated to innovative drug-driven pharmaceutical market, Chinese innovative drug companies should make efforts in the areas of product, capital, talent and policy.

"The implementation of the value-based strategic purchase of the national medical insurance program is the future trend of the pharmaceutical industry. The clinical research of new drugs must not only take into account market demands, the policy direction of market access should also be considered," she said.