China Has Become a Hotspot for MNCs' BD 'Shopping Spree': A Decade Review of Innovative Drug BD Transactions
Over the past decade, China’s innovative drug industry achieved breakthrough growth from scratch to establishment, making the sector a “core Chinese growth fundamental” pursued by venture capital firms dominated by US dollar funds. Since 2022, the industry has faced a capital winter, with a sharp contraction in financing and investment volumes. Business development (BD) transactions have surpassed IPO fundraising for three consecutive years, reshaping the industry’s growth logic. Against the backdrop of robust BD activity, we have also observed that Chinese innovative assets are gradually moving toward high-quality development, domestic pharmaceutical companies’ bargaining power in transactions has significantly strengthened, and deal values have repeatedly hit record highs...
At the 2025 ASCO Annual Meeting held half a month ago, a record-high 73 Chinese studies were presented as oral abstracts, underscoring the rise of innovative drugs from China. From June 16 to 19, the BIO International Convention 2025 took place at the Boston Convention and Exhibition Center in the United States. As the world’s largest and most influential event in the biotechnology industry, the BIO Convention annually brings together heavyweight participants from across the globe, including biopharmaceutical companies, technology innovators, investment firms, and regulatory agencies, to showcase cutting-edge technologies and foster global collaboration. Business development (BD) has always been a central theme of this premier global biotechnology event, and it may well be where Chinese companies embark on their BD journeys. This year’s convention attracted more than 1,500 companies from 37 countries and regions, along with 20,000 attendees. U.S.-based companies accounted for the largest share at 40.92%. Thirty-seven biotech enterprises from mainland China—including Henlius, Harbour BioMed, Antengene, Bio-Thera Solutions, HitGen, and Joinn Laboratories—gathered in Boston to present their advanced technologies and latest pipelines, engaging in partnership discussions with various stakeholders.
As the BIO International Convention convenes, VBInsight has conducted a comprehensive review of business development (BD) transaction data for innovative drugs over the past decade, systematically analyzing transaction types and characteristics to reveal the developmental trajectory, current landscape, and future trends of China’s innovative drug BD transactions.As the inaugural report in the [Innovative Drug BD Thematic Report] series, this document first provides a comprehensive overview of the current landscape of business development (BD) transactions, then delves into an in-depth analysis of the competitive advantages and market positioning of Chinese innovative pharmaceutical companies, and finally offers insights and perspectives on future directions for BD deals. Our core viewpoints are as follows:
1. Over the past decade, business development (BD) transactions involving innovative drugs in China have undergone a round of upgrading, primarily reflected in the types of assets, transaction models, and participating players:Innovative drug pipelines are gradually shifting from a “scattered” model to a “focused” model centered on first-in-class (FIC) and best-in-class (BIC) candidates in key therapeutic areas; transaction models such as NewCo and Hybrid NewCo are driving a new wave of enthusiasm; Big Pharma is accelerating its entry, with license-out deals evolving from pure technology transfer to collaborative R&D partnerships.
2. Currently, the attractiveness of China's innovative drug pipeline has significantly increased:Over the past decade, the total value, upfront payments, and per-deal amounts of business development (BD) transactions involving multinational corporations (MNCs) in China have steadily increased. Currently, over 90% of leading MNCs have incorporated Chinese pipelines into their BD strategies, and the collaboration models between MNCs and Chinese innovative pharmaceutical companies are continuing to evolve.
3. In the Future, “More, Faster, Better, and Cheaper”China's innovative assets will accelerate their rise, Chinawill continue to beThe Prime Acquisition Hotspot Most Favored by MNCs;
4. In the future,AtBuyer's Perspective, MNCs will continue to ramp up BD deals and identify pipelines with exceptional cost-effectiveness, implementing the “buy early, buy well” strategy; inSeller's Perspective, Chinese pharmaceutical companies will focus on three core areas: FIC/BIC drugs, endocrine-metabolic and autoimmune indications, and bispecific antibody, monoclonal antibody, and ADC product pipelines, while strengthening investment in early-stage R&D.
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BD Drives the Recovery of the Innovative Drug Industry, with Global Expansion Anchoring a New Tier of Growth
Over the past decade, the scale of business development (BD) transactions for innovative drugs in China has continued to rise, becoming a key driver of industry recovery.As of 2024, the total value of business development (BD) transactions for innovative drugs in China has exceeded$50 billionOn one hand, the emergence of innovative transaction models such as NewCo has significantly increased the value of individual deals; on the other hand, the participation of large enterprises like Big Pharma has further strengthened the bargaining power of domestic assets, driving Chinese innovative drugs’ license-out transactions from unilateral technology transfer toward collaborative R&D, with value distribution gradually evolving from fixed milestones to dynamic revenue sharing.
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China Has Become a Hotbed for MNCs’ Aggressive Acquisition of Innovative Drugs, with Nearly $80 Billion Spent in Two Years
MNCs’ preference for innovative drug assets in China is mainly reflected in three aspects: “high volume,” “large transaction amounts,” and “global leadership.” High volume:Over the past decade, leading multinational corporations (MNCs) have accelerated their collaborations with Chinese pharmaceutical companies; currently, more than 90% of these top MNCs have licensed-in innovative drug pipelines from China through business development (BD) deals.High Amount:Since 2015, and particularly from 2021 onwards, the total value of business development (BD) deals, upfront payments, and per-deal amounts involving multinational corporations (MNCs) in China have surged rapidly. The collaboration models between MNCs and Chinese innovative pharmaceutical companies have further evolved, with increased investment in early-stage innovation.Global Leader:Over the past five years, China has become the country with the fastest growth in global BD out-licensing.
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“Fast, Efficient, High-Quality, and Cost-Effective”: China Accelerates Its Rise as the Global Leader in Exporting Innovative Drugs
“Multiple”:The “Abundance” of China’s Innovative Pharmaceutical Enterprises Is Reflected in Three Aspects: A Large Number of Original Innovative Drugs, a High Count of Innovative Drug Companies and Pipelines Under Development, and a Substantial Volume of Patents and Publications. Over the past decade, the cumulative number of original innovative drugs developed in China has reached 3,575, ranking first globally; the number of innovative drug companies has exceeded 1,200, with more than 7,000 pipelines under development, propelling China to second place worldwide; meanwhile, the volume of pharmaceutical-related publications has steadily increased, accounting for 25% of the global share, second only to the United States.
“Fast”:The “Speed” of Chinese Innovative Pharmaceutical Companies Is Reflected in Three Aspects: High Efficiency in Clinical R&D, Rapid Follow-up on Hot Targets, and Efficient Review and Approval Processes. In 2023, more than half of clinical trials were able to initiate patient recruitment within six months, with the average duration for completing new drug clinical trials being 78 days. In 2025, domestic policies supporting innovative drugs were further strengthened, reducing the approval time for clinical trials of innovative drugs from 60 days to 30 days. Meanwhile, Chinese innovative pharmaceutical companies have also demonstrated significant advantages in their ability to quickly follow emerging technical pathways and hot targets.
“Good”:The “Strength” of China’s Innovative Pharmaceutical Companies Is Reflected in High R&D Quality and Strong AI-Driven R&D Capabilities. Over the past five years, China has developed 628 first-in-class (FIC) innovative drugs, accounting for approximately 24% of the global total of original innovative drugs. Chinese innovative pharmaceutical companies have frequently launched blockbuster products, with the industry gradually transitioning from a “Fast-Follow” model to a “Global FIC” and “Global Best-in-Class (BIC)” stage. Furthermore, China’s competitive advantages in artificial intelligence are further empowering domestic enterprises to accelerate the transformation of the fundamental paradigms underlying drug discovery and development.
“Province”:The “Cost Efficiency” of Chinese Innovative Pharmaceutical Companies: Engineer Dividend and Supply Chain AdvantagesChina’s innovative pharmaceutical companies achieve cost efficiency through two key advantages: the engineer dividend and a robust industrial supply chain. In addition to boasting the world’s largest and most cost-effective pool of engineers, China’s innovative drug supply chain is continuously upgrading. China is not only the world’s largest production market for nucleotides, but its capabilities in niche active pharmaceutical ingredient (API) segments—such as peptides and cell culture media—are also steadily improving. Furthermore, leading Chinese contract research, development, and manufacturing organizations (CXOs) have attained global competitiveness, further enhancing the cost-effectiveness of domestic innovative drug pipelines.
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