Merck responds to layoffs at U.S. vaccine factory; Eli Lilly's first large-scale AI factory in operation

This is 21 Health News Daily. Welcome to join the 21st Century Business Herald’s new health reporting team to follow the latest developments in the pharmaceutical and healthcare industry together! Policy developments

Release of the 2026 Government Work Report

On March 5, the fourth session of the 14th National People’s Congress opened at the Great Hall of the People. In reviewing the achievements of the “14th Five-Year Plan” development period, the Government Work Report noted that new quality productive forces in China have been developing steadily, that achievements in scientific and technological innovation are plentiful, and that R&D applications in areas such as artificial intelligence and biopharmaceuticals are leading the world.

As 2026 is the opening year of the “15th Five-Year Plan,” the draft of the 《Outline of the 15th Five-Year Plan for National Economic and Social Development of the People’s Republic of China (Draft)》 submitted to the meeting for review clearly states that, in the area of improving people’s well-being, it will focus on the urgent needs and pain points of the public and set targeted indicators for seven areas: employment, income, education, healthcare, health, “one old, one young” (supporting the elderly and caring for children), etc., thereby mapping out a five-year path for building a Healthy China.

21 Insights: In recent years, “three-medicine” (medical care, medical insurance, and pharmaceuticals) coordinated development and governance have been a key focus of health and wellness work. Measures such as hierarchical diagnosis and treatment, provincial-level overall planning, centralized procurement, and high-quality development of innovative drugs and medical devices have become high-frequency keywords in this year’s Government Work Report. The goals are twofold: to strive to improve the health and well-being of the people, and to strongly promote innovation and upgrading in the pharmaceutical industry, helping Chinese pharmaceutical innovation accelerate its leap from the world’s second tier to the first tier.

《Technical Guidelines for Clinical Trials of Drugs for Chronic Rhinosinusitis with Nasal Polyps》 Released

On March 4, the National Medical Products Administration (NMPA) Review and Evaluation Center released the 《Technical Guidelines for Clinical Trials of Drugs for Chronic Rhinosinusitis with Nasal Polyps》, which came into effect as of the date of release. The guidelines specify the standards for clinical trial design, implementation, and evaluation for this category of drugs; they regulate trial populations, control selection, and efficacy and safety indicators; they unify technical requirements for R&D; they support the submission and application for related innovative drug development; and they standardize the clinical development of drugs in the field. Approvals for drugs and medical devices

InnoTek: The Company Has Obtained Product Qualification for a New Product

InnoTek (688253.SH) announced that the company recently obtained a new product qualification: a medical device registration certificate for the combined test kit for偏肺病毒 and parainfluenza virus antigens (latex chromatography method), for which the product is intended. The intended use of the above product is for in vitro qualitative detection of偏肺病毒 antigen and parainfluenza virus antigen in pharyngeal swab samples. The acquisition of the aforementioned qualification broadens the company’s product categories and further enhances the company’s market expansion capabilities and core competitiveness. However, the actual sales of the product are affected by various factors, such as market demand, market competition, and the effectiveness of the company’s market promotion; therefore, the contribution to profits is uncertain, and it is still not possible to predict the impact of the above product on the company’s future operating performance.

Simcere: HSK50042 Tablets’ New Indication Clinical Trial Approved

Simcere (002653) (002653.SZ) announced that its subsidiary, Shanghai Hisennovo Pharmaceutical Technology Co., Ltd., recently received from the NMPA the 《Notice of Approval for Drug Clinical Trials》. HSK50042 tablets are an orally administered, potent, highly selective small-molecule inhibitor drug independently developed by the company. This time, another new indication in the field of respiratory system diseases has been approved for a clinical trial.

Fosun Pharma: Controlling Subsidiary’s Drug Granted Approval for Clinical Trials

Fosun Pharma (600196) (600196.SH) announced that its controlling subsidiary, Shanghai Fosun Hanlin Biotech Co., Ltd., as well as its controlling subsidiaries, received from the National Medical Products Administration approval regarding its consent to use HLX97 (i.e., KAT6A/B small-molecule inhibitor) for initiating Phase I clinical trials for the treatment of advanced/metastatic solid tumors. Capital markets

A New Monoclonal Antibody Drug Gets Funded Again

On March 3, 2026, Teva Pharmaceuticals and Blackstone Life Sciences jointly announced the completion of a strategic financing agreement. Blackstone Life Sciences will provide $400 million (over RMB 2.7 billion) to Teva over four years to support the clinical development of Teva’s TL1A monoclonal antibody duvakitug.

This is another major round of funding that duvakitug has received following the joint development agreement reached with Teva Pharmaceuticals after Sanofi’s $500 million upfront payment and up to $1 billion in milestone payments in 2023. In just two and a half years, this TL1A monoclonal antibody, still in the clinical stage, has already attracted a chain of commitments from multinational pharmaceutical companies and top-tier capital. Major events in the industry

Cansino: The Company’s Production Base Passes Malaysia’s PIC/S GMP Compliance Inspection

Cansino (688185.SH) announced that the production base of ACYW135 group meningococcal polysaccharide conjugate vaccine (CRM197 carrier) (MCV4) and 13-valent pneumococcal polysaccharide conjugate vaccine (CRM197/tetanus toxoid) (PCV13i) has passed the PIC/S GMP compliance inspection by Malaysia’s National Pharmaceutical Regulatory Authority and has been issued a GMP certificate. This will help promote the registration, listing, and launch of MCV4 and PCV13i in Malaysia and other PIC/S member countries. However, the timing, scale, and expansion progress of product sales in overseas markets remain uncertain, affected by multiple factors including changes in the global market environment and fluctuations in supply and demand and exchange rates.

Merck Responds to Layoffs at an American Vaccine Factory

Media reports show that on March 5, in response to the layoff incident at the Durham base in North Carolina, USA, Merck stated that due to a decline in global demand for HPV vaccines, the company decided to optimize its capacity. The company’s HPV vaccine production line at the Durham facility will be shut down, and about 150 employees will be affected. Merck said it has been continuously assessing its operating conditions and business changes, and when necessary, will make corresponding adjustments to ensure that its manufacturing and production network can supply drugs and vaccines in a stable and compliant manner. In addition, Merck’s HPV vaccines in the China market still maintain stable supply.

Eli Lilly’s First Large-Scale AI Factory Is Up and Running, with More Than 1,000 GPUs

On March 5, Eli Lilly’s AI drug factory, LillyPod, has commenced operations. This is also the first AI drug factory in the world that is fully operated independently by a pharmaceutical company. The factory completed assembly in just four months and is equipped with more than 1,000 NVIDIA Blackwell Ultra GPUs, providing tremendous computing power for scientific research.