China's Innovative Drugs Surge Overseas with BD Deals Exceeding $10 Billion

Oct 25, 2025 08:05 CST Updated 08:05

Innovent

High-end Biologics Developer

Hansoh Pharma

Pharmaceutical Research, Production, and Sales

Pregene

Cell Therapy Drug Developer

10Month22On [date], Innovent Bio and Takeda reached a total amount of114USD billion blockbuster deal, becoming the largest in China currentlyBDTransaction Event. The main assets involved in this transaction includeIBI363AndIBI343, Takeda also obtainedIBI3001（EGFR/B7H3Bispecific AntibodyADC`) The right of first refusal. If Takeda subsequently exercises the option to introduce`IBI3001, the down payment and milestone payments shall be paid separately.

By coincidence,10In the month, China's innovative drug sector saw another wave of intensive activities.BDTrading Boom: Hansoh Pharma Reaches Agreement with Roche15.3Billion US dollarsADCDrug Authorization: Pregene to Gilead's SubsidiaryKitePharmaIn-situ in the bodyCAR-TGlobal rights for the therapy, and collaborations with international pharmaceutical companies have also been successively finalized by VibeBio, Ascletis, and Haihe Biopharma, covering five major deals.ADC, cell therapy, autoimmune and solid tumor rare targets, etc., core tracks, with a total amount reaching several billion US dollars.

This is not an isolated market phenomenon, but a vivid footnote to the qualitative breakthrough of China's innovative drug export from quantitative accumulation. According to the China Pharmaceutical Industry Information CenterPharma ONEBig data on drug development shows,2025Before the Year8Total Outbound Licensing Amount of China's Innovative Drugs in the Past Few Months Has Reached874Billion US dollars, far exceeding2024Throughout the year554Billion dollars. Global pharmaceutical transactionsTOP10In China, the contribution rate of China's innovative drug assets exceeds80%, an industrial revolution driven by technical strength and resonating with global resources is accelerating.

Trading Boom:

The Value Leap Behind the Data

China Innovative DrugsBDThe explosive growth of going overseas has shown multiple breakthrough characteristics in terms of transaction scale, quality, and structure, marking that the global valuation system of China's innovative assets is being reconstructed.

The leapfrog growth in trading volume serves as the most intuitive proof. According to data from PharmaCube,2025In the first half of the year, ChinaLicense-outThe first payment of the transaction reached26USD billion, with a total amount as high as600billion dollars, not only climbed to a proportion in China-related transaction amounts respectively91%And99%, and has surpassed2024Total amount for the whole year37Billion USD, Achieve129%Year-on-year growth. The密集涌现 of large-scale transactions is more标志性意义:2025Before the Year8Months,10Transactions exceeding USD billion21Pen, Close2024Annual level. Among them, Qiguang Dejian130USD Billion Deal Sets Record for Single Largest Overseas Transaction in China's Innovative Drug Industry; Collaboration Between 3SBio and Pfizer12.5USD billion upfront payment sets a new record for the highest upfront payment for an innovative drug produced in China. Even recently...5In the transaction, Pregene andKitePharmaThe total amount of cooperation has also reached16.4Hundreds of millions of dollars, demonstrating the international market's recognition of the pricing of China's innovative assets.

The optimization of transaction structures reflects the deep logic of industrial upgrading. In pipeline selection, Chinese pharmaceutical companies have transitioned from the early years...Me-too、Me-BetterProduct Category-Dominant TransitionFIC（First-in-Class, First-in-class),BIC（Best-in-class,Best-in-class) assets lead the way, Hansoh Pharma'sCDH17TargetedADCHS-20110As a potentialFICThe drug, favored by Roche for its clear activity in preclinical and early clinical stages, is a typical example of this trend.

Target layout starts fromHER2、TROP2Such mature fields asCDH6、CDH17、DLL3As blue ocean targets extend, clinical value is enhanced while homogenized competition is avoided. The technology track is showing a diversified explosive trend.ADCDrugs continue to lead the way,2025Before the year8Months to14The item transaction becomes a popular track, bispecific antibodies, trispecific antibodies andGLP-1Multi-target drugs also performed well, with DualityBio'sEGFR/HER3Bispecific AntibodyADC、Federal Pharmaceutical'sGLP-1/GIP/GCGHigh-value licensing achieved for triple-target agonists and more.

The structural shift in funding sources has further reshaped the industry ecosystem.2023Since the year,BDThe initial business payment has exceededIPOThe amount of financing has become the primary source of funding for innovative pharmaceutical companies in China.2025This pattern was further consolidated in the year. This shift not only provided enterprises with stable cash flow support but also changed the industry's exit logic — the exit routes for investors and startups are no longer limited toIPO, based onBDCash distribution and mergers and acquisitions have become important options, driving the industry to transform from capital-driven to value-driven.

Bidirectional Drive:

Global Demand Resonates with China's Strength

Current Innovative DrugsBDThe formation of the overseas expansion trend is an inevitable result of the interaction between the strategic needs of international pharmaceutical giants and the enhancement of China's innovative drug industry capabilities, which together constitute the "dual engines" driving industrial development.

The pressure to replenish pipelines for international pharmaceutical giants constitutes the core driving force on the demand side. The global pharmaceutical industry has long faced the dilemma of R&D efficiency, which is mainly reflected in high R&D costs, low success rates, and long market launch cycles. The returns from internal pipelines of multinational pharmaceutical companies are insufficient to support market capitalization growth and return on net assets. The ongoing impact of the patent cliff has further exacerbated this anxiety, such as Roche's Herceptin and Avastin."The 'Three Horses' Patents Expired and Encountered the Impact of Biosimilars, Urgently Needing a New Growth Engine, Which Led to Its IntroductionHS-20110The core appeal is to fill the gap.CDH17This new track in solid tumors is a response to Bristol-Myers Squibb (BMS") and other competitors' positioning challenges. Against this backdrop, the "cost" of China's innovative drugs...+The comprehensive advantage of "speed" is becoming increasingly prominent, enabling the efficient development of new targets and technologies by leveraging the engineer dividend while advancing clinical trials at a relatively reasonable cost. This has become the optimal choice for multinational pharmaceutical companies to enhance R&D efficiency.

The leap in capabilities of China's innovative drug industry constitutes the core support on the supply side. After more than a decade of accumulation, Chinese pharmaceutical companies have achieved critical breakthroughs in R&D quality. The previous phenomenon of valuation discounts due to insufficient data trust has largely disappeared, and there is no significant difference between the quality of domestic molecules and international standards. This improvement is thanks to leading companies.CRDMO(Contract Research, Development and Production Organization) enterprises empower, companies like WuXi Biologics significantly reduce the asset risks of R&D-based pharmaceutical companies by improving industry quality standards, indirectly promotingBDThe completion of the deal. The perfection of the clinical research and development system is equally crucial, as Chinese pharmaceutical companies are already capable of conducting international multicenter clinical trials (MRCT) capabilities, Hansoh Pharma'sHS-20110The Phase I clinical trials were launched simultaneously in China and the United States, and this globally synchronized R&D model has significantly enhanced the international attractiveness of the asset.

The maturity of the industrial ecosystem provides systematic support. From target discovery to clinical development, from production to quality control, China has formed a complete innovative drug industry chain. This ecological advantage enables innovative achievements to be efficiently transformed into tradable high-quality assets.CRDMOThe rapid development of the industry is particularly crucial, as its value has upgraded from a mere "contract manufacturer" to an "ecological partner." Data from WuXi Biologics shows that projects of Chinese clients acquired by overseas pharmaceutical companies remain on their platform, with order values surging from tens of millions of RMB to tens of millions of USD, achieving a multi-fold increase in value.2030Year GlobalCDMOThe market size is expected to reach2500Hundreds of millions of dollars, this growth will be with innovative drugsBDGoing overseas creates synergistic effects.

Model Upgrade:

From "Borrowing a Boat to Sail Overseas" to "Collaborative Win-Win"

WithBDThe in-depth evolution of transactions has upgraded the overseas expansion model of China's innovative pharmaceutical companies from the early simple rights transfer to a composite cooperation that combines value realization, capacity building, and global layout, showcasing a more mature industrial mindset.

For ChinaBiotechAs for,BDCollaboration has become the optimal solution for balancing R&D risks with value realization. The development of innovative drugs is characterized by long cycles, high investment, and significant risks, often requiring a considerable amount of time for a drug to progress from research to market.10More than 10 years and billions of funds invested. ThroughLicense-outModel, enterprises can receive upfront payments and milestone payments in the early stage of R&D, quickly recouping part of the costs and providing financial support for subsequent R&D. Pregene has obtained authorization for in-situ applications within the body.CAR-TTherapy Acquisition1.2Hundreds of millions of dollars in upfront payments not only alleviated the high R&D investment pressure in the cell therapy field, but also achieved synchronized progress in R&D and revenue through milestone payments. More importantly, this collaboration realized development by leveraging resources. VibeBio will...LBL-047The overseas rights were licensed to a Novartis subsidiary, which can leverage its global clinical development and commercialization capabilities to accelerate the global approval process of the drug, while accumulating international clinical experience.

For multinational pharmaceutical companies, cooperation with Chinese pharmaceutical enterprises has shifted from simple asset purchases to strategic complementarity.ADC, bispecific antibodies and other popular technology tracks, the R&D progress of Chinese pharmaceutical companies has achieved global leadership, and Roche has introducedHS-20110Not only filled its gap inCDH17The pipeline gap in targets can be addressed by leveraging Hansoh Pharma's R&D accumulation to counteract the technological impact from companies like Daiichi Sankyo. This complementarity is even more pronounced in niche fields, as evidenced by Haihe Pharma's second collaboration with Taiho Pharmaceutical of Japan.PI3KThe α inhibitor Resolysin has filled the gap in the field of highly prevalent tumors in Japan, achieving precise regional market positioning. Multinational pharmaceutical companies are also increasing their attention on China's innovation platforms, extending from single-product licensing to platform-based collaborations, reflecting long-term confidence in China’s innovative capabilities.

The diversification of cooperative regions has expanded the breadth and depth of going global. In addition to the traditional European and American markets, Chinese pharmaceutical companies have begun to focus on the layout of emerging markets such as Asia. Aosaikang willASKG712In15An Asian country/Regional rights granted toVisara, which not only avoids the high barriers of directly entering the European and American markets but also realizes value realization by relying on regional markets. The cooperation between Haihe Pharma and Japan's Taiho Pharmaceutical is a model of regional synergy, leveraging the channel advantages of local enterprises to accelerate the commercialization process of drugs in the Japanese market. This kind of "global+The dual-track layout of "regions" has made the path for China's innovative drugs to go global more three-dimensional and diverse.

Challenges and Responses:

Sailing Steadily and Far in the Wave of Globalization

DespiteBDA Surge in Overseas Expansion: China's Innovative Drug Industry Faces Multiple Challenges; Breaking Through Bottlenecks and Achieving Sustainable Development Becomes an Essential Question for the Industry.

Homogenization in R&D and target overcrowding remain prominent risks. Despite expansion into blue ocean targets, there is still a phenomenon of repetitive positioning in some fields, and without the ability to continuously produce truly internationally competitive results...FIC/BICAssets may lead to a shrinkage in the value of future transactions. In response, enterprises need to strengthen their source innovation capabilities, increase investment in basic research, and build advantages in frontier areas such as target discovery and mechanism of action studies. The experience of Hansoh Pharma is worth learning from, as it has continuously expanded its layout.B7-H3、B7-H4、CDH17Multiple DifferentiationsADCTargets, forming a multi-target global layout, for continuousBDLaid the foundation for cooperation.

International competition and compliance risks are increasing. As global innovative drug companies are stepping up their efforts.BDThe competition for high-quality assets is becoming increasingly fierce, while changes in regulatory policies across countries are adding to the uncertainty of going global. Companies need to establish a global compliance system, deeply understand regulatory requirements in different regions, and accumulate international registration experience through cooperation with multinational pharmaceutical companies. Wuxi Biologics, etc.CRDMOCorporate practices have shown that a quality system compliant with international standards is key to gaining recognition for assets, and this experience is equally applicable to the R&D and production processes of innovative pharmaceutical companies.

Post-transaction synergistic management tests corporate capabilities.BDThe deal is not the end, but the beginning of cooperation. How to achieve efficient collaboration in terms of R&D progress, data sharing, and commercial profit-sharing directly impacts the ultimate value of the project. Chinese pharmaceutical companies need to enhance their international operational capabilities and establish professional...BDTeam and Project Management: Taking the Initiative in Collaboration with Multinational Pharmaceutical Companies. Anthony Fuda, Co-founder of OnCure Medicine, pointed out that the professionalism of the management team is particularly crucial when the market environment is unfavorable—a perspective that holds significant weight.BDIt is equally applicable in cooperative management.

The sluggish financing in the primary market and the talent gap constitute long-term challenges.2024Biopharmaceutical Primary Market Investment in Recent Years2021Year-on-year decline73.25%The difficulty in financing has not been fundamentally alleviated; at the same time, the scarcity of versatile talents with both R&D capabilities and international business experience has become a constraint.BDThe in-depth advancement of cooperation. In this regard, the industry needs to further improve the investment and financing ecosystem, broaden financing channels by combining policy guidance with market mechanisms; at the same time, strengthen school-enterprise collaboration and international talent recruitment to build a multi-level talent system.

<<<Summary>>>

From Hansoh Pharma's major deal with Roche to Pregene's breakthrough in the cell therapy field, recent developments have been密集的BDCollaboration outlines a new landscape for China's innovative drug exports. The significance of this trend goes far beyond the transactions themselves, marking China's innovative drug industry as having evolved from a follower in the global pharmaceutical industry chain to an important participant in the global innovation network, upgrading from单纯的产品输出 to a combination of technology and value output.

Looking ahead, with the continuous enhancement of R&D capabilities and the constant improvement of the ecosystem, China's innovative drugsBDGoing global will present broader prospects. It is expected that2025—2030Year,2020Chinese innovative drugs authorized for overseas markets after the year will gradually achieve global commercialization, with the potential to bring in approximately82Incremental profits in the billions of dollars. More importantly, this overseas expansion model will drive Chinese pharmaceutical companies to deeply integrate into the global R&D, clinical, and commercialization systems, enhancing their competitiveness while providing more cost-effective treatment options for patients worldwide.

Standing at a new historical starting point, China's innovative drug industry must seizeBDThe historical opportunity to go global, achieving rapid growth through cooperation; and more importantly, adhering to the original intention of innovation, making continuous breakthroughs in basic research and core technologies. Only in this way can we truly move from "borrowing a boat to go global" to "building a ship for long voyages," occupying a core position in the global innovative drug landscape, and writing a new chapter of globalization for China's pharmaceutical industry.

Editor: Li Yongshi

Layout Editor: Yu Yuanze

Reviewed by: Ma Fei, Zhang Song