Merck will continue to invest in China, which is not only the second-largest consumer market in the world but also has rising innovation capability, said a senior executive of the German science and technology company.

"China is a significant market for us, for looking at innovation to bring it outside China and bringing our innovation into China," said Peter Guenter, a member of the executive board and CEO of Healthcare at Merck.

"We have done a lot of investments in China. Our commitment to China is clear. We will continue to grow, and we will continue to invest in the country."

The executive is deeply impressed by the remarkable changes in China's pharmaceutical market as it has "developed incredibly over the last 10 to 20 years, transforming from a generic industry focused on small molecules to one driven by innovation".

China has become very strong in technological innovation, as reflected by its rapid progress and innovation in the field of antibody-drug conjugates, he said.

China's huge potential as a major innovation hub holds great promise for Merck to collaborate with local partners, including startups, biotech and biopharma firms, and research institutes, to drive innovation forward, said Guenter.

"At a certain point in time, China could be the country from which innovation comes, truly first. I think that's the next frontier for the Chinese R&D ecosystem, to continue being very, very good at perfecting technologies, but also going upstream to find a new molecule for a new disease."

Citing various dynamics behind China's growing innovation drive that include well-educated talent and enabling regulatory environment, the executive spoke particularly highly of the clinical development pace in China.

The speed, agility and quality of the Chinese investigators who conduct clinical trials are remarkable, he said, adding the massive number of patients with unmet medical needs also contributes to the speedy drug development pace in the country.