Latest news with #US1
Sydney Morning Herald
6 hours ago
- Business
- Sydney Morning Herald
China's latest boom is sounding alarm bells in America
It marked a watershed moment for the pharmaceutical sector, which had long written off China as a nation that excelled in drug manufacturing and 'copycat' treatments but not medicine discovery. Akeso's debut on the world stage has been described as a 'DeepSeek' moment for the industry – a reference to the sudden emergence of a highly advanced AI chatbot out of China earlier this year, which took US tech giants by surprise and wiped close to $US1 trillion ($1.5 trillion) off global stock markets. Summit's shares are up more than 600 per cent since first announcing the lung cancer trial results. 'The two large innovators in our industry today are the US and China,' Sir Pascal Soriot, the boss of AstraZeneca, said in March. 'China is, I think over the next five to 10 years, going to emerge as really a driving force for innovation in our sector.' It sets the stage for a growing tussle between the US and China over the future of drug development. Donald Trump has been clear that he wants pharmaceutical giants to be investing more in America. Biopharmaceutical companies and their suppliers account for 4.9 million jobs and are worth around $US1.65 trillion ($2.6 trillion) to the US. However, drug companies are increasingly turning east when it comes to investing in new drugs and clinical trials. Not only is China becoming an easier place to research and create new drugs, but the Trump administration is also shaking faith in the US. Vaccine sceptic health secretary Robert F Kennedy Jr has prompted much anxiety in the industry. By contrast, China is 'very business friendly and stable' Novartis boss Vas Narasimhan said in May. Drugs boom Beijing has been attempting to win more pharma investment for years – and specifically attempting to boost funding for drug innovation. Drug discovery was a key pillar of the 'Healthy China 2030″ strategy unveiled in 2016, aimed at helping the country cope with its ageing population. Loading The focus has already paid dividends. Over the past three years alone, the number of Chinese drugs in development has doubled to 4,391. Almost half are either novel drugs or something known as a 'fast-follower', where treatments are quickly developed on the back of breakthroughs by rivals. According to Barclays, the number of so-called 'first-in-class' drugs under development in China rose to around 120 last year, having been in the single digits in 2015. First-in-class essentially measures the level of innovation by looking at the highest development stage a drug has reached and the earliest time it reached that stage. The growth in China is unmatched. While the US, which has long been regarded as the world leader in drug discovery, has more first-in-class drugs in development, at 151, the growth rate has been much slower. 'The shift isn't incremental, it's tectonic,' says Abhishek Jha, the founder of life sciences data company Elucidata. One crucial part of Beijing's push to drive more drug discovery has been speeding up clinical trials. In China, regulators allow businesses to get studies up and running quicker, and then update them as they progress. This can provide early data on new drugs, which is a major draw for multinational companies looking for novel treatments that show signs of working well. It has sparked a boom in studies taking place in China. According to figures from the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), China accounted for around 18 per cent of clinical trials sponsored by companies in 2023 compared to just 5 per cent in 2013. Meanwhile, the US proportion has dipped from 28 per cent to 23 per cent. Clinical trial enrolment in China is surging, with around 40 per cent now having more than 100 participants. Bitter pill Fewer regulatory barriers are just one of a number of reasons pharma companies are turning to China. Workers, too, are less averse to working unsociable hours than they would be in Western nations. Shirley Chen, a Barclays analyst, says: 'Chinese scientists may be happier to accept very long work hours and people like hospital personnel [where trials take place] are actually okay to do night shifts.' Major drug giants are now scouring China for potential deals. The likes of GSK, AstraZeneca and Merck have all struck deals worth more than $US1 billion to get the rights to develop and sell Chinese drugs outside the country. The rise of China's pharmaceutical industry has started to raise alarm bells in the US. Trump may be focused on returning manufacturing jobs to the US, yet some say he should be concerned that more high-quality jobs and research posts are starting to drift to China. 'Five years ago, US pharmaceutical companies didn't license any new drugs from China,' Scott Gottlied, the former Food and Drug Administration commissioner, wrote earlier this month. 'By 2024, one third of their new compounds were coming from Chinese biotechnology firms.' He warned that the shift of clinical trials to Asia could undermine innovation in the US as companies choose to 'divert funds that might otherwise bolster innovation hubs such as Boston's Kendall Square or North Carolina's Research Triangle'. Loading 'The US biotechnology industry was the world's envy, but if we're not careful, every drug could be made in China.' While Trump exempted most countries' pharmaceutical industries from tariffs in his 'liberation day' blitz, China was not spared. That means physically manufacturing drugs for the US in China is out of the question, for now at least.
The Age
6 hours ago
- Business
- The Age
China's latest boom is sounding alarm bells in America
It marked a watershed moment for the pharmaceutical sector, which had long written off China as a nation that excelled in drug manufacturing and 'copycat' treatments but not medicine discovery. Akeso's debut on the world stage has been described as a 'DeepSeek' moment for the industry – a reference to the sudden emergence of a highly advanced AI chatbot out of China earlier this year, which took US tech giants by surprise and wiped close to $US1 trillion ($1.5 trillion) off global stock markets. Summit's shares are up more than 600 per cent since first announcing the lung cancer trial results. 'The two large innovators in our industry today are the US and China,' Sir Pascal Soriot, the boss of AstraZeneca, said in March. 'China is, I think over the next five to 10 years, going to emerge as really a driving force for innovation in our sector.' It sets the stage for a growing tussle between the US and China over the future of drug development. Donald Trump has been clear that he wants pharmaceutical giants to be investing more in America. Biopharmaceutical companies and their suppliers account for 4.9 million jobs and are worth around $US1.65 trillion ($2.6 trillion) to the US. However, drug companies are increasingly turning east when it comes to investing in new drugs and clinical trials. Not only is China becoming an easier place to research and create new drugs, but the Trump administration is also shaking faith in the US. Vaccine sceptic health secretary Robert F Kennedy Jr has prompted much anxiety in the industry. By contrast, China is 'very business friendly and stable' Novartis boss Vas Narasimhan said in May. Drugs boom Beijing has been attempting to win more pharma investment for years – and specifically attempting to boost funding for drug innovation. Drug discovery was a key pillar of the 'Healthy China 2030″ strategy unveiled in 2016, aimed at helping the country cope with its ageing population. Loading The focus has already paid dividends. Over the past three years alone, the number of Chinese drugs in development has doubled to 4,391. Almost half are either novel drugs or something known as a 'fast-follower', where treatments are quickly developed on the back of breakthroughs by rivals. According to Barclays, the number of so-called 'first-in-class' drugs under development in China rose to around 120 last year, having been in the single digits in 2015. First-in-class essentially measures the level of innovation by looking at the highest development stage a drug has reached and the earliest time it reached that stage. The growth in China is unmatched. While the US, which has long been regarded as the world leader in drug discovery, has more first-in-class drugs in development, at 151, the growth rate has been much slower. 'The shift isn't incremental, it's tectonic,' says Abhishek Jha, the founder of life sciences data company Elucidata. One crucial part of Beijing's push to drive more drug discovery has been speeding up clinical trials. In China, regulators allow businesses to get studies up and running quicker, and then update them as they progress. This can provide early data on new drugs, which is a major draw for multinational companies looking for novel treatments that show signs of working well. It has sparked a boom in studies taking place in China. According to figures from the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), China accounted for around 18 per cent of clinical trials sponsored by companies in 2023 compared to just 5 per cent in 2013. Meanwhile, the US proportion has dipped from 28 per cent to 23 per cent. Clinical trial enrolment in China is surging, with around 40 per cent now having more than 100 participants. Bitter pill Fewer regulatory barriers are just one of a number of reasons pharma companies are turning to China. Workers, too, are less averse to working unsociable hours than they would be in Western nations. Shirley Chen, a Barclays analyst, says: 'Chinese scientists may be happier to accept very long work hours and people like hospital personnel [where trials take place] are actually okay to do night shifts.' Major drug giants are now scouring China for potential deals. The likes of GSK, AstraZeneca and Merck have all struck deals worth more than $US1 billion to get the rights to develop and sell Chinese drugs outside the country. The rise of China's pharmaceutical industry has started to raise alarm bells in the US. Trump may be focused on returning manufacturing jobs to the US, yet some say he should be concerned that more high-quality jobs and research posts are starting to drift to China. 'Five years ago, US pharmaceutical companies didn't license any new drugs from China,' Scott Gottlied, the former Food and Drug Administration commissioner, wrote earlier this month. 'By 2024, one third of their new compounds were coming from Chinese biotechnology firms.' He warned that the shift of clinical trials to Asia could undermine innovation in the US as companies choose to 'divert funds that might otherwise bolster innovation hubs such as Boston's Kendall Square or North Carolina's Research Triangle'. Loading 'The US biotechnology industry was the world's envy, but if we're not careful, every drug could be made in China.' While Trump exempted most countries' pharmaceutical industries from tariffs in his 'liberation day' blitz, China was not spared. That means physically manufacturing drugs for the US in China is out of the question, for now at least.
Sydney Morning Herald
2 days ago
- Politics
- Sydney Morning Herald
Elon Musk moved fast in Washington, but broke only his reputation
I take it personally because my dad spent 20 years as a police inspector in Washington in charge of Senate security. He would run to the House whenever there was trouble. So if on January 6 Mike Dowd had been preventing insurrectionists from assaulting lawmakers, he would now be, in Trump's eyes, not a hero deserving of a plaque, but a blackguard who was thwarting 'patriots,' as Trump calls the rioters he pardoned. Loading It is a disturbing bizarro world. Trump was rewriting reality again as one of the most flamboyant, destructive bromances in government history petered out in the Oval Office. It had peaked last winter when Musk posted on social platform X, 'I love @realDonaldTrump as much as a straight man can love another man,' and again when Trump tried to reciprocate by hawking Teslas in the White House driveway. But Friday, even these grand master salesmen couldn't sell the spin that Elon had 'delivered a colossal change.' Musk has acknowledged recently that his dream of cutting $US1 trillion ($1.5 trillion) had been a fantasy. He said changing Washington was 'an uphill battle' and complained that Trump's 'big, beautiful' budget bill, which could add over $US3 trillion ($4.6 trillion) in debt, could undercut his DOGE attempts to save money. As Trump said, Musk got a lot of 'the slings and the arrows.' His approval rating cratered and violence has been directed toward Tesla, a brand once loved by liberals and in China, which is now tarnished. Musk cut off a reporter who tried to ask about a Times article asserting that he was a habitual user of ketamine and a dabbler in ecstasy and psychedelic mushrooms even after Trump had given him enormous control over the government. That could explain the chain saw-wielding, the jumping up and down onstage, the manic baby-making and crusading for more spreading of sperm by smart people, and the ominous Nazi-style salutes. Loading When a reporter asked Musk why he had a black eye, he joked about the viral video of Brigitte Macron shoving her husband's face. Then he explained that while 'horsing around' with his 5-year-old, X, he suggested the child punch him in the face, 'and he did.' The president and the Tony Stark prototype tried to convey the idea that they would remain tight, even though Musk would no longer be getting into angry altercations with Scott Bessent outside the Oval, sleeping on the floor of the Eisenhower Executive Office Building and hanging around Mar-a-Lago. Musk, wearing a black 'DOGE' cap and black 'Dogefather' T-shirt, looked around the Oval, which Trump has tarted up to look like a Vegas gift shop, and gushed that it 'finally has the majesty that it deserves, thanks to the president.' Trump gave Musk a golden ceremonial White House key, the kind of thing small-town mayors give out, and proclaimed: 'Elon's really not leaving. He's going to be back and forth, I think.' Trump said that the father of (at least) 14 would never desert DOGE completely because 'It's his baby.'
The Age
2 days ago
- Politics
- The Age
Elon Musk moved fast in Washington, but broke only his reputation
I take it personally because my dad spent 20 years as a police inspector in Washington in charge of Senate security. He would run to the House whenever there was trouble. So if on January 6 Mike Dowd had been preventing insurrectionists from assaulting lawmakers, he would now be, in Trump's eyes, not a hero deserving of a plaque, but a blackguard who was thwarting 'patriots,' as Trump calls the rioters he pardoned. Loading It is a disturbing bizarro world. Trump was rewriting reality again as one of the most flamboyant, destructive bromances in government history petered out in the Oval Office. It had peaked last winter when Musk posted on social platform X, 'I love @realDonaldTrump as much as a straight man can love another man,' and again when Trump tried to reciprocate by hawking Teslas in the White House driveway. But Friday, even these grand master salesmen couldn't sell the spin that Elon had 'delivered a colossal change.' Musk has acknowledged recently that his dream of cutting $US1 trillion ($1.5 trillion) had been a fantasy. He said changing Washington was 'an uphill battle' and complained that Trump's 'big, beautiful' budget bill, which could add over $US3 trillion ($4.6 trillion) in debt, could undercut his DOGE attempts to save money. As Trump said, Musk got a lot of 'the slings and the arrows.' His approval rating cratered and violence has been directed toward Tesla, a brand once loved by liberals and in China, which is now tarnished. Musk cut off a reporter who tried to ask about a Times article asserting that he was a habitual user of ketamine and a dabbler in ecstasy and psychedelic mushrooms even after Trump had given him enormous control over the government. That could explain the chain saw-wielding, the jumping up and down onstage, the manic baby-making and crusading for more spreading of sperm by smart people, and the ominous Nazi-style salutes. Loading When a reporter asked Musk why he had a black eye, he joked about the viral video of Brigitte Macron shoving her husband's face. Then he explained that while 'horsing around' with his 5-year-old, X, he suggested the child punch him in the face, 'and he did.' The president and the Tony Stark prototype tried to convey the idea that they would remain tight, even though Musk would no longer be getting into angry altercations with Scott Bessent outside the Oval, sleeping on the floor of the Eisenhower Executive Office Building and hanging around Mar-a-Lago. Musk, wearing a black 'DOGE' cap and black 'Dogefather' T-shirt, looked around the Oval, which Trump has tarted up to look like a Vegas gift shop, and gushed that it 'finally has the majesty that it deserves, thanks to the president.' Trump gave Musk a golden ceremonial White House key, the kind of thing small-town mayors give out, and proclaimed: 'Elon's really not leaving. He's going to be back and forth, I think.' Trump said that the father of (at least) 14 would never desert DOGE completely because 'It's his baby.'
Sydney Morning Herald
2 days ago
- Business
- Sydney Morning Herald
It's hard to admit, but we can all learn something from Elon Musk
This is not something I ever imagined I'd find myself saying, but I think we could all learn something from Elon Musk, particularly when it comes to money habits and ideology. I know, I know. At first glance, it's difficult to see what any of us normal people who pay mortgages, fly economy and budget for groceries each week have in common with the world's richest living individual, but stay with me. This week, Musk announced that after four months of serving as the unofficial BFF of President Donald Trump he is going to say goodbye to Washington and is stepping down from his role as a top government adviser. Like so many friendships between the mega-rich, it looks like the two have had an ideological falling out over … yep, you guessed it, money. As you'll no doubt remember, Musk has been a key fixture of the White House since Trump's return thanks to his role as the head of the Department of Government Efficiency (DOGE), where he and a bunch of young and extremely inexperienced tech bros (who called themselves 'Muskrats' due to their idolisation of the Tesla CEO) attempted to cut down on 'wasteful' government spending. This included things like slashing 300,000 government jobs and cutting funding to research programs aimed at raising US literacy rates in schools. When the Tesla CEO began talking about his plans for DOGE in October last year during the presidential campaign, Musk said the agency would be able to find 'at least $US2 trillion ($3.1 trillion)' in cuts – a third of the entire US federal budget – which he saw to be 'a target-rich environment for saving money'. Challenging ourselves is essential if we want to understand our reasons for spending or saving the way that we do, and to get better at it. By January, Musk had wound that estimate back, saying that $US2 trillion would be the 'best-case outcome', and that more likely, the cuts would be closer to the tune of half of that figure – $US1 trillion. This number, he said, would still be 'an epic outcome'. Now that he's on his way out, Musk is saying his final DOGE cuts figure is actually closer to $US175 billion (though audits suggest the true figure is far less than this). In terms of delivering Trump the 'savings' that were promised, it really is the Temu version showing up on his doorstep.
