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Perhaps the most significant red flag for potential investors is the uncertainty surrounding regulatory practices. China has been overhauling its drug review processes akin to the U.S. FDA; however, the new framework’s effectiveness remains in question. Delays in drug approvals and a backlog of applications paint a picture of a system still evolving.
While the government is reportedly addressing these issues by increasing resources to handle application surges, confidence in the regulatory environment is crucial for investors seeking transparency and accountability in clinical trials.