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The Profound Impact of Globalization on the Biotechnology Industry

Globalization has a deeper impact on the biotechnology industry than on many other sectors. This is because the core characteristic of biotech lies in its heavy reliance on the accumulation of knowledge and technology—resources that are dispersed across different countries, institutions, and companies. The value chain of new drugs and emerging technologies is no longer a closed loop that a single company can accomplish on its own. Instead, it is a network built on cross-border division of labor, specialized collaboration, and the global flow of resources.

I. Global Division of Labor in the Value Chain

The biotech value chain includes basic research, preclinical studies, clinical trials, regulatory approval, manufacturing, and marketing. Each stage demands significant expertise, capital investment, and risk management, and different countries and regions hold distinct advantages in each segment.

For instance, the United States leads in basic scientific research and clinical trial design; Europe has strong expertise in regulatory systems and clinical data standards; Asia—particularly China and India—has developed strong competitiveness in large-scale manufacturing and cost control. This means that for any pharmaceutical company aiming to successfully launch a new drug in the global market, it is almost impossible to rely solely on its in-house R&D. Instead, it must leverage cross-border cooperation and external resources.

II. Mergers and Acquisitions as a Primary Path to Innovation

In the globalized biotech industry, mergers and acquisitions (M&A) have become the primary way for large pharmaceutical companies to acquire new products and technologies. Multinational giants such as Pfizer, Roche, and Novartis conduct multiple acquisitions almost every year. Their targets are often small- and mid-sized biotech firms that achieve breakthroughs in niche areas but lack the capital and market reach to scale.

Through acquisitions, big pharma can not only quickly expand their product portfolios but also absorb advanced R&D teams and technological platforms. For example, in 2019 Pfizer acquired oncology company Array BioPharma, obtaining an advanced cancer treatment pipeline. Roche’s acquisition of Genentech in 2009 further consolidated its leadership in biopharmaceuticals. These cases highlight that drug innovation is now a “global network process,” not the achievement of a single company or nation.

III. The Importance of Global Supply Chains

Beyond R&D, biotech manufacturing and supply chains epitomize globalization. The raw material of a drug might come from India, formulation could be done in Ireland or China, and final packaging and distribution might take place in the United States or Europe. This global design lowers costs, enhances efficiency, and achieves economies of scale.

For example, the development, manufacturing, and distribution of the Pfizer/BioNTech COVID-19 vaccine involved collaboration across Germany, the United States, Belgium, and other countries. Without global supply chain support, mass production and worldwide distribution in such a short time would have been impossible.

IV. The Risks of De-Globalization

However, with rising geopolitical tensions and de-globalization trends, the biotech sector faces significant risks. If the U.S. or other major economies implement de-globalization policies, the consequences may include:

1. Higher R&D Costs: If cross-border M&A and collaborations are restricted, large pharmaceutical firms will struggle to access external innovations, delaying pipelines and driving up costs and timelines.

2. Rising Manufacturing Costs: Forcing localized supply chains would remove the advantage of lowest-cost sourcing, inevitably raising drug prices and undermining patient affordability.

3. Slower Innovation: Drug development relies on international clinical data sharing and cross-border trial cooperation. De-globalization could create data barriers that slow down drug approvals.

4. Challenges to U.S. Leadership: America’s biotech dominance is built on global resource integration. Severing international collaboration could weaken its leadership and allow emerging markets to catch up.

V. Health Without Borders: The Need for Openness and Cooperation

The biotech sector is unique because it directly relates to human life and health. Diseases do not respect borders, and viruses do not stop at geopolitical boundaries. The COVID-19 pandemic illustrated this clearly: only through international cooperation could vaccines and therapeutics be developed rapidly and distributed globally.

Thus, the biotech industry must embrace openness and cooperation. Regional mechanisms—such as the European Medicines Agency (EMA) coordinating drug approvals or Asia’s emerging clinical trial networks—can play stronger roles in the future. If countries deepen cooperation in regulatory alignment, clinical data sharing, and complementary use of medical resources, R&D and manufacturing costs can be reduced substantially, accelerating innovation that benefits humanity.

VI. Conclusion

Globalization’s role in advancing the biotech industry is irreplaceable. New drug R&D and production have already become a global division-of-labor system, beyond the capacity of any single company or country. If de-globalization rises, it will inevitably lead to higher costs, slower innovation, and a weakened leadership position for advanced economies like the U.S.

“Health knows no borders.” The biotech sector should be viewed with an open mindset. Only through cross-border collaboration and strengthened regional coordination can the world ensure sustained breakthroughs in drugs and technologies—ultimately bringing benefits to all of humanity.