China's Innovative Drug BD Deals Surge in October, Headlined by Innovent’s $11.4B Pact with Takeda

Since October 10,Innovative DrugBD Transactions (Business Development, including licensing and co-development) have been successfully concluded, making the sector a focal point in the market once again.

On October 22, Hong Kong Stock Exchange-listed companyInnovent BioAnnouncement, will cooperate with JapanTakeda Pharmaceuticals(Takeda) to co-develop IBI363 globally, and according to a 40/60 ratio (Innovent Bio/Takeda Pharmaceutical) Share development costs; both parties will jointly commercialize IBI363 in the United States and distribute profits or losses in the U.S. market according to a 40/60 split.

According to the agreement,Innovent BioReceived a $1.2 billion upfront payment, including $100 million obtained through strategic equity investment. Innovent Bio is also eligible to receive up to $10.2 billion in potential development and sales milestone payments, bringing the total transaction value to up to $11.4 billion, setting a new record.China MedicineIndustry BD Transaction Records.

In addition to Innovent Bio, several other A-share and Hong Kong-listed companies announced their latest BD transaction updates within the month. For instance, between October 16 and October 17,Hunan Hansen Pharmaceutical Co., Ltd., Leads Biolabs,AskGeneAndGan&Li PharmaceuticalsBoth announced the latest BD deals, involving total amounts ranging from 0.96 billion USD to 15.3 billion USD.

Non-listed companies also have multiple firms announcing their BD transaction updates. For instance, Pregene, a company listed on the New Third Board, announced on October 17 that it had reached a collaboration with Kite, a subsidiary of Gilead. Pregene is entitled to and has received an upfront payment totaling $120 million and is eligible to receive up to $1.52 billion in milestone payments, as well as royalties based on future net product sales.

In addition, Haihe Biopharma announced on October 16 that it had reached an exclusive licensing agreement for the Japanese market for its self-developed PI3Kα inhibitor Resolisib (CYH33). This marks another collaboration between Haihe Biopharma and Taiho Pharmaceutical Co., Ltd. following Glumetinib, focusing on the development, production, and commercialization of Resolisib in Japan.

Huatai SecuritiesThe research report shows that, as of August 27, 2025, products made in ChinaInnovative DrugBD Goes GlobalInnovative DrugThe proportion of projects in BD exceeds 15% (3/13% in 2019/2024), and the disclosed total amount accounts for over 50% (1/28% in 2019/2024). The value reassessment of China's innovative drug projects has already started at the overseas transaction level. As R&D progresses, domestically produced innovative drugs that achieve out-licensing are expected to successively enter the commercial stage, sharing in the benefits of overseas markets.

HuafuSecuritiesIt is believed that the market volatility after the holiday mainly stems from profit-taking under the long holiday effect and capital being drawn away by other sectors. At the same time, after the expected return of some BD projects to rationality, short-term market expectations were digested in advance, leading to stock price adjustments. The core of the innovative drug market trend is shifting from broad valuation recovery to focusing on companies' ability to deliver on their fundamentals. Companies with truly exceptional clinical data, strong commercialization capabilities, and successful overseas potential will become the future winners.