China's Innovative Drug BD Deals Surge in 2025 with Diversified Collaboration Models

　　【Pharmaceutical Network Industry Dynamics】After years of development in research and development, regulation, capital, and supply chain, China's innovative drug industry has continuously enhanced its competitiveness while rapidly increasing its share in global pharmaceutical transactions. According to reports, the total amount of China's innovative drug out-licensing in the first three quarters of 2025 has exceeded 100 billion US dollars. Notably, the collaboration between 3SBIOINC and Pfizer with a 1.25 billion US dollar upfront payment, as well as the 12 billion US dollar partnership between Hengrui Pharma and GSK, have drawn significant attention.
 

Notably, as the number of innovative drug BD collaborations continues to rise, more creative cooperation models are also emerging. On December 4, Kelun-Biotech and Crescent jointly announced the establishment of a strategic partnership to co-develop and commercialize oncology treatments (including novel combination therapies). This pipeline exchange-style collaboration involves Kelun-Biotech's ADC product SKB105 and Crescent's PD-1xVEGF bispecific antibody CR-001. The total value of the collaboration amounts to $1.38 billion, approximately RMB 9.758 billion.
 

Data shows that SKB105 is a differentiated ADC targeting ITGB6, and a Phase I/II clinical trial of SKB105 for solid tumor patients is expected to commence in the first quarter of 2026. CR-001 is a PD-1/VEGF bispecific antibody currently under development for the treatment of solid tumors.
 

According to the terms of the collaboration, Kelun-Biotech will receive an upfront payment of $80 million from Crescent and is eligible to receive up to $1.25 billion in milestone payments (for a total of $1.33 billion), as well as tiered royalties based on the net sales of SKB105. Meanwhile, Crescent will receive an upfront payment of $20 million from Kelun-Biotech and is eligible to receive up to $30 million in milestone payments (for a total of $50 million), along with tiered royalties based on the net sales of CR-001.
 

On December 5, Innovent Bio announced that the global strategic cooperation with Takeda Pharmaceutical has met all closing conditions, and the agreement has officially taken effect. The collaboration was announced on October 22, 2025, under which Innovent Bio granted Takeda Pharmaceutical the rights to two ongoing pipelines and an exclusive option for another pipeline. Innovent Bio received a $1.2 billion upfront payment, with the potential total transaction value reaching up to $11.4 billion.
 

Reportedly, this transaction model is called the "Co-Co Model." Unlike local pharmaceutical companies simply selling their innovative assets, this model involves joint development and co-commercialization with partners. This approach offers pharmaceutical companies a more flexible way to collaborate, integrating resources in R&D, clinical trials, and marketing, while motivating both parties to actively contribute. It is particularly suitable for companies with complementary needs in R&D capabilities and market channels.
 

Overall, BD transactions have become the core engine driving the globalization of China's innovative drug industry. Among these, the deal between Kelun-Biotech and Crescent stands as a significant event in the integration of China's pharmaceutical industry into the global innovation ecosystem. It represents a strategic evolution for Chinese innovative drug companies in their globalization approach, shifting from "one-way output" to "resource parity exchange." In the future, as China's innovative drug pipelines mature, more novel transaction models are expected to emerge, particularly in cutting-edge fields such as ADCs and bispecific antibodies.
 

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