Chinese biotech groups are on target to raise about $10bn this year from venture capital funding, initial public offerings and licensing deals with overseas pharma companies, in what is partly a bet that Chinese-developed drugs can compete globally.

China contributes about 4 per cent of global drug innovation, compared with 50 per cent from the US, according to Chinese pharmaceutical associations. That mirrors the country’s 4 per cent share of the $157bn that market research group EvaluatePharma estimates was spent globally last year on drug R&D.

But that share is set to increase as scientists returning from overseas launch start-ups and domestic companies spend more on R&D, with about 800 new molecules currently under development in China — up from 240 in 2012 — about 80 of which are in phase III clinical trials, according to consultancy McKinsey.