China's Pharmaceutical Industry Rides the BD Wave: Domestic Innovative Drugs Deeply Integrate into Global Pharma Value Networks

　　【Pharmaceutical Network Industry Dynamics】In 2025, against the backdrop of China's continued deepening of the reform of the drug review and approval system and the implementation of a series of policies encouraging innovation, outbound licensing transactions for domestically produced innovative drugs experienced a major surge. By the end of 2025, the flurry of deals fully demonstrated this BD boom phenomenon.
 

On December 31, Zelgen announced that it had entered into a strategic collaboration and license option agreement with AbbVie for the global development and commercialization of ZG006 (Alveltamig). Under the agreement, Zelgen will receive an upfront payment of $100 million, near-term milestone payments based on clinical progress, and payments related to the license option of up to $60 million. If AbbVie exercises the license option, Zelgen is also eligible to receive milestone payments of up to $1.075 billion and tiered royalties ranging from high single digits to mid-double digits on net sales of products containing ZG006 outside Greater China.
 

On December 29, Buchang Pharmaceuticals announced that its holding subsidiary, Luzhou Buchang, signed an "Exclusive Supply Agreement" with Malaysian company MEDISPEC(M) SDN BHD ("MEDISPEC"). According to the agreement, Luzhou Buchang will authorize MEDISPEC as the exclusive agent in Malaysia (target region) to handle the registration, promotion, distribution, and sales of Efparepoetin alfa for injection (target product) within the region. This transaction aims to advance the company's international product strategy and enhance brand influence and economic benefits.
 

On December 21, Jacobio Pharmaceuticals announced that it had reached a cooperation agreement with AstraZeneca for its self-developed pan-KRAS inhibitor JAB-23E73. According to the agreement, AstraZeneca will obtain exclusive development and commercialization rights for the product in markets outside of China. In the Chinese market, Jacobio will co-develop and commercialize the product with AstraZeneca. The agreement terms show that Jacobio will receive an upfront payment of 100 million US dollars and is eligible to receive additional development and commercialization milestone payments of up to 1.915 billion US dollars, as well as tiered royalties on net sales achieved in markets outside of China.
 

On December 16, Hansoh Pharma announced that its wholly-owned subsidiary, Jiangsu Hengsen Pharmaceutical Group Co., Ltd., entered into an exclusive licensing, collaboration, and distribution agreement with Glenmark Specialty S.A. Under the agreement, Glenmark Specialty S.A. is authorized to develop and commercialize Aumolertinib (Aumolertinib Mesylate Tablets) in regions including the Middle East and Africa, Southeast Asia and South Asia, Australia, New Zealand, Russia, and other CIS countries. According to the agreement, Hansoh Pharma will receive an upfront payment and potential regulatory and commercial milestone payments exceeding one billion US dollars cumulatively, as well as tiered royalties based on net sales within the licensed territories.
 

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According to statistics, by December 31, 2025, the total annual transaction value of China's innovative drug business development (BD) overseas licensing has reached 135.655 billion US dollars, with upfront payments of 7 billion US dollars. In addition to the significant increase in transaction value, the overseas model has also evolved from a single "License-out" (authorized overseas) to deeper cooperation models such as joint development and independent overseas expansion.
 

The industry believes that the wave of China's pharmaceutical BD going global in 2025 proves that domestic pharmaceutical companies can not only quickly follow up but also engage in high-quality original innovation and deeply integrate into the global pharmaceutical value network. In the future, the industry will enter a new phase of high-quality development, measured by global competitiveness, supported by platform ecosystems, and driven by highly efficient R&D. Among them, leading companies with globally competitive pipelines or platform technologies will gain more resources, forming a "the strong get stronger" pattern. Meanwhile, companies lacking differentiated innovation capabilities will face elimination or mergers and acquisitions, significantly increasing industry concentration.
 

　　Disclaimer: Under no circumstances shall the information or opinions expressed in this article constitute investment advice to any person.