Over 100 Foreign Pharma Executives Join Chinese Firms in 5 Years Industry Faces Key Challenges

The recent move of Shan Guohong, former Takeda Senior Vice President and China President, to BeiGene has drawn significant industry attention. Similarly, AstraZeneca’s former Global Senior Vice President Feng Ji recently joined Hengrui Medicine as General Manager and Chief Operating Officer. These moves highlight an accelerating trend: foreign pharma executives are increasingly joining domestic Chinese pharmaceutical companies.

According to Artery Network, in the past five years, nearly 100 senior executives from multinational pharma companies have transitioned to Chinese firms. Notable examples include Wu Xiaobin (BeiGene), Jiang Ningjun (Hengrui Medicine), and Zhu Tong (Zai Lab). This shift marks a stark contrast to ten years ago, when many executives left foreign firms to start their own companies. For instance, Chen Bo co-founded Junshi Biosciences after leaving Eli Lilly in 2012, and Yu Dechao established Innovent Biologics after departing from Calydon in 2011.

Now, instead of launching new ventures, these executives are opting to join established Chinese pharmaceutical companies, a move reflecting significant changes in the industry.

Why Foreign Pharma Executives Are Returning to China

This trend can be attributed to both push and pull factors.

On the push side, foreign pharmaceutical companies face increasing uncertainty in the Chinese market. Policies such as tariffs and "most favored nation" restrictions, combined with intensifying U.S.-China competition in innovative drugs, have led to reduced investment by multinationals in China. A senior expert noted, "Disruptions in U.S.-China relations could sideline Chinese executives at foreign firms, limiting career growth or even causing job losses if these companies scale back in China."

On the pull side, domestic pharmaceutical companies are rapidly advancing. By 2024, China led the world in ADC drugs, cell therapy, bispecific antibodies, and oncolytic viruses, with domestic ADC pipelines accounting for over 40% of the global total. This progress has created greater opportunities for foreign-trained executives to leverage their expertise in areas like business development (BD) and commercialization.

Additionally, the financial incentives are hard to ignore. According to the 2022 Talent Market Insight and Salary Guide, foreign pharma executives transitioning to Chinese firms enjoy salary increases of 30-50%, with some even exceeding 50%. A headhunter revealed that C-level positions at Chinese firms often come with placement fees of 500,000-600,000 yuan, reflecting the intense demand for such talent.

The Impact of Returning Executives

Unlike the past focus on R&D, returning executives are now driving commercialization and business development. Over the last five years, 40% of transitioning executives have taken on commercialization roles, surpassing R&D positions by 10%.

For example, Chen Shaofeng, who held senior roles at AstraZeneca, AbbVie, and Roche, became Chief Commercial Officer at InnoCare Pharma in 2024. Under his leadership, the company’s revenue reached 420 million yuan in the first half of the year, an 11.17% increase year-on-year. Similarly, Mu Yanping, formerly with GSK and AstraZeneca, helped Alebio achieve 2 billion yuan in sales for its flagship drug Fumetinib within a year of launch.

In business development, Liu Yongjun, who previously worked at AstraZeneca and Sanofi, joined Innovent Biologics in 2020. He facilitated over $50 billion worth of deals between 2020 and 2024, including partnerships with Roche and Eli Lilly.

Retention Challenges for Returning Executives

Despite the opportunities, the transition is not always smooth. Over half of the executives who "returned" in the last five years have already changed jobs or left the industry. The so-called "18-month curse"—where 70% of pharma executives leave within 18 months of joining—looms large.

Many cite cultural clashes as a key issue. Domestic firms often have flat management structures and aggressive timelines, contrasting with the methodical pace of multinational companies. As one insider put it, "The decision-making processes are fundamentally different, leading to misaligned expectations."

Additionally, domestic firms often expect immediate results from high-paid hires, creating performance pressure. A biotech CEO lamented, "If I had the resources they demanded, I wouldn't need them in the first place!"

Finally, the volatile nature of the pharmaceutical industry itself adds to the uncertainty. For instance, Lu Lizhen, who joined Luoxin Pharma in 2021, faced setbacks as the company’s key products were included in China’s national procurement program, slashing profits and limiting growth opportunities.