$XTALPI(02228.HK)Mark Horn, President of Merck China, said at the Asia Financial Forum held in Hong Kong on Tuesday: "By 2026, we will see a transition from AI-assisted discovery to fully AI-designed compounds that may enter the R&D pipeline. We have already seen some very exciting examples in China."

He made these remarks as China's biopharmaceutical industry has transformed from a generic drug manufacturer to a global innovation powerhouse over the past decade. Last year, Chinese pharmaceutical companies signed a record $135.7 billion in out-licensing agreements, more than double the projected total of $51.9 billion in 2024.

Horn said: "Currently, about 30% of Merck's new drug R&D pipeline comes from China. China has a vast amount of patient data, and the government has just announced an 'AI+' plan for the coming years, which will greatly boost development in this field."

He added: "We may see a truly AI-designed compound approved in China next year."