China Biotech Promise Struggles to Keep Foreign Innovators

  • Lilly, Glaxo join Novartis in scaling back China drug research
  • Research cuts contrast with China’s push to speed innovation
Photographer: Nicky Loh/Bloomberg
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As money rushes into China’s fledgling biotechnology sector, Eli Lilly & Co.Bloomberg Terminal and other foreign drugmakers are scaling back.

Eli Lilly, along with GlaxoSmithKline PlcBloomberg Terminal, announced plans the past few months to cut research teams in China, after Novartis AGBloomberg Terminal shuttered a biotech research unit there a year ago. “This closure comes after careful study and consideration, and is meant to provide better synergies and efficiencies within Lilly’s global R&D operations,” Indianapolis-based Eli Lilly said in an email.