Eyes on China: The Race to Lead a USD 9.5 Billion Ophthalmology Market

With nearly half of Chinese adults now suffering from myopia and age-related eye conditions on the rise, China is on the brink of an ophthalmology boom — a market set to more than double by 2031. While global players like Santen have taken an early lead, a new wave of domestic challengers is emerging, eager to capture untapped demand in what remains a highly fragmented, under-served segment. At the forefront: Shanghai-based OcuMension Therapeutics, a once-obscure startup now vying to become China’s dominant eye health brand.

Extraordinary Growth Potential

With its large patient pool and a still significant gap in access to eye care, China’s ophthalmology market is anticipated to soar from USD 4.51 billion in 2022 to around USD 9.47 billion by 2031. International players like Santen with its China 2.0 strategy are zeroing in on the market, which according to the company’s China head Shawn Xiang has “extraordinary growth potential and substantial unmet medical needs. Conditions such as myopia, dry eye, back-of-the-eye diseases, and glaucoma represent vast areas of opportunity.”

While these multinational drugmakers still dominate with about 60-70 percent of China’s eyecare market, a crop of domestic ophthalmology players has taken the stage and is looking to meet the largely unexploited demand for ophthalmology therapies. Home-grown firm Kanghong stands out for its pursuit of domestically-developed eye therapies; its flagship treatment of retinal diseases, Lumitin; and the gene therapy candidates it aims to advance.

Another ambitious China-based ophthalmology-focused outfit, OcuMension Therapeutics, has also seized the opportunity to enter this lucrative market. Beginning it journey in 2018 with USD 5 million and no initial products, OcoMension is today a public company with a raft of commercialised eye health offerings. “When OcuMension was founded, most multinational corporations (MNCs) were not strong in ophthalmology. Local companies were almost non-existent in the field. That allowed OcuMension to enter the market and grow rapidly” says CEO and co-founder Liu Ye of the company’s beginnings.

A Sharp Focus on Eye Care

OcuMension quickly realised that to succeed in ophthalmology, specialisation was required. “The challenge with ophthalmology is that it generally lacks major blockbuster drugs. No single product generates massive revenues in China, unlike in oncology. Success in ophthalmology comes from having a broad portfolio,” Ye affirms. OcuMension has succeeded in embracing a large spectrum of eye conditions, with commercialised therapies in areas ranging from glaucoma and ocular hypertension to allergic conjunctivitis and dry eye.

Today, the company has no less than 34 ophthalmic assets and has built steady growth through the ongoing pursuit of licensing deals. One  significant recent agreement was OcuMension’s 2024 deal with Alcon for the Chinese commercialization rights on a portfolio of dry eye treatments.

R&D Drive

Beyond licensing, OcuMension has also launched significant in-house R&D efforts, and, according to Ye, is responsible for nearly one-third of all Phase III ophthalmology studies in the country.  “We have developed an extensive portfolio that comprehensively covers the entire market, while simultaneously investing in our own fundamental research and development, particularly in advanced, frontier treatments. Our R&D efforts include phase three clinical trials, initiated entirely from scratch,” OcuMension’s CEO explains.

Two key R&D areas for the company are dry eye and myopia. “Our dry eye treatment is a first-in-class drug currently progressing to phase three studies. In the realm of myopia, we are conducting the only multinational clinical trial globally, encompassing the United States, five European countries including the United Kingdom, and China,” Ye asserts, a study that is expected to deliver results by June 2026.

Competitive Advantage

OcuMension has also capitalised on what Ye characterises as the less-than-fierce competition within China’s eye health segment. “China is actually a very favourable market for ophthalmology drugs. Unlike oncology, which is saturated with pharmaceutical reps fighting for a moment of the doctor’s time, ophthalmology has very little competition,” Ye stresses. “Only about six companies—including us—have national sales networks in this field. That makes it far easier to access doctors and build relationships.”

Whereas fierce competition in other areas has led to downward pressure on prices and profit margens, for Ye, this is not the case in the eye care sector and numbers-wise, he has been proven right.  “Last year, our growth rate reached 70 percent, and we are on track to double our sales again this year. Looking ahead, we expect to maintain at least 50 percent annual growth for the foreseeable future.”

In Ye’s view, the company’s in-house pipeline will also soon fuel its growth. “While the pace may appear ambitious, we are confident in our ability to sustain it for at least another five years. Our pipeline has matured significantly, so innovation is now increasingly driven from within, rather than relying solely on licensing opportunities.”

Beyond China

A Chinese company focused largely on the Chinese market, the majority of OcuMension’s products are reimbursed through the national insurance system. OcuMension does, however, see the potential for some of its therapies in other geographies. Its self-developed drug to treat the progression of myopia in children, OT-101, is a good example. One key market  will be the United States, “where we will license the product out to a multinational corporation that understands how to operate in that market,” says Ye.