Finnegan first opened its offices in Shanghai in 2008. How has the pharmaceutical industry evolved as a key client from then until now?

 Since our establishment in Shanghai in 2008, Finnegan has witnessed significant changes in the pharmaceutical industry as a key client. Our primary focus in Shanghai is to assist Chinese companies in protecting and enforcing their intellectual property (IP) rights in the United States. Additionally, we collaborate with foreign clients on patent litigation in China, working closely with Chinese counsel. Our expertise spans various technical areas, including chemical, pharmaceutical, biotech, mechanical, and electrical fields. Approximately 40% of our attorneys specialize in the pharmaceutical domain. Initially, when we arrived in China, we observed a lack of emphasis on innovation among Chinese pharmaceutical companies, with most focusing on generics, particularly small molecule generics, which we do not represent. However, over the past decade, we have encountered a growing number of innovative pharmaceutical companies in China, not only in small molecules but also in the biotechnology sector. This shift has contributed to the expansion of our client base.

The firm is consistently ranked as a top-tier IP specialist law firm in the U.S. As a firm dedicated exclusively to the task of IP protection, what range of services do you offer, and how do these activities contribute to the innovation process in China?

 As a firm dedicated exclusively to IP protection, we offer a comprehensive range of services that contribute to the innovation process in China. One of our key roles is helping clients draft patent applications, which is a fundamental but crucial task in safeguarding their valuable assets. We also provide opinions on patentability, non-infringement, and freedom to operate. These services are particularly valuable to our innovative pharmaceutical clients as they require this knowledge to attract investment and minimize risks. Large pharmaceutical companies often conduct due diligence when evaluating assets, and we assist our clients in defending their positions during this process. Our goal is for major pharmaceutical companies to recognize that our clients possess not only advanced technology but also strong patents, ensuring their intellectual property is protected and valued.

What reforms in terms of patent protection have you seen as most impactful on behalf of the Chinese government?

The introduction of patent linkage and data protection by the Chinese government has been one of the most impactful reforms in terms of patent protection. In 2018, the central government announced its intention to implement patent linkage and data protection in China. While the full details are yet to be disclosed, this development represents a turning point for the pharmaceutical industry in China. The integration of the approval process with patent protection will provide additional safeguards for innovative pharmaceutical companies beyond pure patent protection. This system, well-established in the United States, is anticipated to have a similar structure in China, aiming to promote innovation within the industry. This step by the Chinese government underscores its commitment to fostering an environment conducive to innovation and intellectual property rights protection.

IP plays a huge role in laying the groundwork for innovation to occur, but what else do you see as driving innovation?

While intellectual property plays a crucial role in facilitating innovation, several other factors contribute to driving innovation in China. In the past, China’s pharmaceutical market was dominated by generics, with only a small number of innovators. However, even companies traditionally focused on generics have intensified their research efforts, either through in-house initiatives or subsidiaries. This shift can be attributed, in part, to the Chinese government’s investments, which extend beyond providing funding solely to research institutes. Generous funding has been allocated specifically to companies seeking international patents. However, the government realized that this model was not sustainable for achieving its goal of inspiring greater innovation, as the increase in patent applications did not correspond to a proportional increase in quality. As a result, the government has recognized the need to ensure the quality of patent applications in addition to the quantity.

As a returnee to China working within the life sciences, what is driving your return, and how are you assisting in developing a better life for wider Chinese society?

As returnees to China, our decision to work in the life sciences sector is driven by our love for this country and our desire to contribute to overall innovation. China presents us with an opportunity to bring in fresh perspectives and talents to foster advancements in the pharmaceutical industry. Our role extends beyond legal expertise; we aim to make China a better place for everyone, particularly in the pharmaceutical sector. BayHelix, a club for life sciences executives, unites individuals who believe that pharmaceutical advancements should benefit people worldwide, including the Chinese population. Through our work and collaboration, we strive to ensure that Chinese society enjoys the benefits brought about by advancements in medicine, aligning with our commitment to developing a better life for all.

China is projected to be the largest pharmaceutical industry by 2020. What is Finnegan’s expectation for the country, and what gaps can be better addressed as it makes this transition?

Overall, we hold an optimistic view of the future of the pharmaceutical industry in China, provided there is continued strong leadership focused on serving the people. Unless there are political disruptions, China is poised to become a formidable market, attracting innovative pharmaceutical players from around the world. This growth is necessary to address the healthcare needs of its large patient population. As patent attorneys, we hope that China’s protection and enforcement system aligns with international standards, ensuring that investors feel comfortable with their investments in the country. Leveraging our experience with patent law and patent linkage in the United States, we assist clients in protecting their valuable IP assets in China, mitigating IP risks, effectively defending their IP rights, and navigating the regulatory framework and interplay between the China Food and Drug Administration (CFDA) and the patent office. By contributing to a robust and reliable IP ecosystem, we aim to support China’s transition and facilitate its development as a global pharmaceutical leader.