š¤Ā Licensing fever at new high: In 2025, Chinese pharma companies closed 157 out-licensing deals. Total volume: $135.7 billion. In 2024, there were 94 deals worth $51.9 billion.
šĀ From niche to must-have: Out-licensing means Chinese companies license drug compounds to Western pharma giants after starting clinical trialsāin exchange for upfront payments, milestones, and revenue shares.
š§¬Ā The biggest hits: GeneQuantum landed a $13 billion deal for cancer drugs. 3SBio licensed an oncology drug to Pfizer for $6 billion. Hengrui followed with $12.5 billion from GSK for a COPD medication.
ā” Regulators on fast-forward: China approved 76 innovative drugs in 2025. That's 58% more than the year before. Many are biologics and new cancer therapies.
š Patent anxiety as buying motive: Western pharma giants like AstraZeneca and Merck are desperately searching for new pipeline candidates. By 2030, around $171 billion in annual revenue is at stake from expiring patents.
Background
Chinese companies now account for around 20% of all global drug development projects. For comparison: The US accounts for about 40%, and the five largest EU countries combined for 11%.
Reforms in approval, trials, and regulation have allowed China's biotech sector to mature rapidly. Despite new political risks like the US Biosecure Act, the direction is clear: Anyone looking for new drugs can't ignore China anymore.
The China Survival Guide for Western Businesses
Entity setup, WeChat strategy, hiring your first local team. 12+ years on the ground in Shanghai.
