AstraZeneca and CSPC Pharmaceutical Group Establish Joint Venture to Build Global Biologics Manufacturing Base in Shijiazhuang

Behind the joint venture lies a strategic shift by multinational pharmaceutical companies in China.

On August 5, CSPC announced the formal signing of a joint venture agreement with AstraZeneca. The two parties will jointly establish a next-generation biologic manufacturing facility in Shijiazhuang, China. Under the agreement, CSPC and AstraZeneca will hold 51% and 49% equity stakes in the joint venture, respectively, and will be jointly responsible for its construction and operations. Initially, the joint venture will focus on producing and supplying drug substance (DS) for agreed-upon biologic products to the global market. As production capacity expands and commercial demands evolve, both parties may include additional products within its operational scope.

This is not merely a collaboration on production capacity. Over the past few decades, multinational pharmaceutical companies entering China have progressed through distinct stages: from product sales and localized manufacturing to the acquisition of Chinese innovative assets. The establishment of a joint venture by CSPC and AstraZeneca represents a significant leap in their partnership, evolving from past transactions centered on individual products to a long-term strategic alignment encompassing R&D, manufacturing, and global supply capabilities.

Behind this shift lies the transformation of China’s pharmaceutical industry. In the past, China served primarily as a key market for global pharmaceutical companies; today, with the rapid development of its innovative drug sector, China is emerging as an indispensable force in innovation and manufacturing within the global pharmaceutical supply chain.

From CSPC’s licensing of its Lp(a) small-molecule program to AstraZeneca in 2024, to their collaboration on an AI-driven drug discovery platform in 2025, and further to their successive expansions into the weight-loss and small nucleic acid therapeutic areas in 2026, the relationship between the two companies has gradually evolved from single-project cooperation to encompass technology platforms and industrial ecosystems. The establishment of this joint venture further advances their partnership into the realm of global supply chain development.

For AstraZeneca, this is more than just adding a production base; for CSPC, it is not merely about expanding manufacturing capacity. What truly binds the two parties is a new model for Chinese enterprises to participate in the global pharmaceutical industry’s division of labor.

The establishment of a joint venture by CSPC and AstraZeneca is not an abrupt strategic choice, but rather the natural outcome of the deepening cooperation between the two parties over the past two years.

In October 2024, CSPC licensed the global rights to a preclinical small-molecule Lp(a) inhibitor to AstraZeneca, with a total transaction value of approximately $2 billion. This deal exemplifies the traditional licensing model for innovative drugs: Chinese companies leverage their R&D capabilities to export innovative assets, while multinational pharmaceutical companies utilize their global development and commercialization expertise to realize product value.

A year later, the collaboration between the two parties deepened further. In June 2025, CSPC leveraged its AI-driven drug discovery platform to develop novel oral small-molecule candidate drugs for AstraZeneca, with potential transaction values reaching $5.33 billion. Compared to their previous project-specific collaborations, this time the focus has shifted from a single drug to the R&D platform capabilities behind CSPC.

In early 2026, the collaboration between the two parties expanded into the increasingly prominent field of metabolic diseases. CSPC licensed the overseas rights to its weight management portfolio, including the long-acting dual GLP-1/GIP receptor agonist SYH2082, to AstraZeneca, with a potential total transaction value of up to $18.5 billion. This deal further demonstrates that Chinese innovative pharmaceutical companies are becoming a key source for global pharmaceutical firms seeking their next growth curve.

Subsequently, the two parties expanded their collaboration into the field of small nucleic acids, jointly developing candidate drugs for kidney diseases by leveraging CSPC’s proprietary siRNA drug discovery platform and its extra-hepatic targeted delivery platform.

By examining the collaborative pathways between both parties, a clear trend emerges: cooperation is shifting from products to platforms, and from transactions to systems.

Previously, AstraZeneca acquired innovative assets from CSPC through collaboration; the establishment of this joint venture signifies that both parties have begun to jointly build industrial capabilities.

This is also why this collaboration opted for a joint venture, rather than simply adopting a procurement or contract manufacturing model.

For multinational pharmaceutical companies, if the sole objective is to address manufacturing challenges, established CDMOs are already capable of providing relevant services. However, the establishment of a joint venture signifies that both parties are jointly investing resources and sharing operational responsibilities, reflecting higher expectations for future business scale and long-term collaboration.

More importantly, the joint venture is not positioned to serve the Chinese market, but rather to supply biologic drug substances to the global market.

This point is critical.

In the past, multinational pharmaceutical companies established manufacturing capabilities in China primarily to meet local market demand, leveraging localized production to reduce costs and enhance supply efficiency. However, the recent collaboration between CSPC and AstraZeneca integrates China’s manufacturing system into their global supply network.

This indicates that the value of China's pharmaceutical industry is undergoing a transformation.

In the past, China’s competitive advantages were primarily reflected in large-scale manufacturing and cost efficiency; today, as quality systems, engineering capabilities, and industrial chains continue to mature, Chinese companies are becoming key participants in the global pharmaceutical supply chain.

CSPC provides not just manufacturing capacity, but a comprehensive industrialization system honed over years of experience. For AstraZeneca, this capability holds greater long-term value than simply securing a supplier.

Looking back at AstraZeneca’s development trajectory in the Chinese market, it becomes evident that the establishment of a joint venture with CSPC represents a shift in its collaboration model in China.

In 2016, AstraZeneca completed two significant asset transactions with CMS Pharmaceutical Group. That year, CMS Pharmaceutical paid $310 million to secure the exclusive rights to promote and sell AstraZeneca’s Plendil (felodipine) in China. During the same period, Tibet Rhodiola Pharmaceutical Holding Co., Ltd., a listed company controlled by the CMS group, invested $190 million to acquire AstraZeneca’s global assets for Imdur (isosorbide mononitrate), excluding the United States, while CMS obtained the exclusive agency rights for this product in the Chinese market.

Such transactions are very common in the development process of multinational pharmaceutical companies. For AstraZeneca, this is part of mature product lifecycle management, achieving asset optimization by selling rights in certain regions; for CMS, it involves leveraging its own commercialization system to take over mature products and expand market coverage.

From the perspective of transaction essence, this is a product rights transaction. AstraZeneca received cash returns and completed asset adjustments; Chinese companies obtained product operating rights to enhance their commercialization capabilities. The two parties did not form deep capital-level binding, and AstraZeneca does not hold shares in CMS.

This model of collaboration aligned with the development stage of China’s pharmaceutical market at that time.

For an extended period, the core objective of multinational pharmaceutical companies entering China was to enhance their access to the Chinese market. China boasts rapidly growing healthcare demands and a vast patient population, while multinational pharmaceutical companies possess mature product portfolios and global R&D systems. Consequently, collaboration between the two parties has primarily focused on product introduction, commercial promotion, and market expansion.

However, today, the environment of China's pharmaceutical industry has changed.

With the rapid development of the innovative drug industry, Chinese enterprises are no longer merely facilitating the entry of overseas products into the Chinese market; they are also increasingly capable of exporting innovative assets and industrial capabilities to the global stage.

Therefore, the focus of AstraZeneca's collaborations with Chinese enterprises is also evolving.

In the past, efforts were primarily centered on product commercialization, addressing market entry challenges through Chinese partners; today, they increasingly revolve around innovative R&D, technology platforms, and industrial ecosystems.

The joint venture between CSPC and AstraZeneca emerged against this backdrop.

Its most significant distinction from past product-based equity transactions lies in the fact that the core of the partnership is no longer a single product, but rather a comprehensive capability system designed to serve the global market.

From the CMS case to the CSPC case, what has changed is not only the form of collaboration but also China’s role in AstraZeneca’s global strategy.

In the past, China was primarily a key market for AstraZeneca to unlock the commercial value of its products; today, it is becoming a vital hub for the company to access innovative resources and strengthen its global supply chain.

03 Are Multinational Pharmaceutical Companies Reconfiguring Their China Strategy?

The collaboration between CSPC and AstraZeneca is not merely a unilateral choice by a multinational pharmaceutical company for a Chinese enterprise, but rather a strategic adjustment amid the evolving competitive landscape of the global pharmaceutical industry. In recent years, an increasing number of multinational pharmaceutical companies have been reevaluating China’s position within the global innovation ecosystem, with AstraZeneca standing out as one of the most representative examples.

In the past, the core logic for multinational pharmaceutical companies entering China revolved primarily around market considerations. China’s vast population, growing healthcare demands, and rapidly expanding innovative drug market made it a significant source of growth for global pharmaceutical firms. However, as the global pharmaceutical industry enters a phase of deepened innovation, the market is no longer the sole factor of concern for multinational corporations. How to secure next-generation innovative technologies, enhance R&D efficiency, and build more resilient global supply chains has become the new focal point of competition among global pharmaceutical companies.

This is also an important backdrop to the changing values in China.

In the past, China’s role in the global pharmaceutical industry chain was primarily concentrated in manufacturing and market consumption. However, after more than a decade of development, China has established a more comprehensive innovation ecosystem. Spanning basic scientific research and clinical resources to innovative pharmaceutical companies, CROs, CDMOs, and industrialization capabilities, China is gradually becoming an integral part of the global pharmaceutical innovation system.

Particularly in the field of innovative drugs, Chinese enterprises have significantly accelerated their development pace. In the past, Chinese innovators primarily focused on following overseas mature targets and technical pathways. In recent years, however, an increasing number of companies have begun to seek differentiated opportunities in global competition. In areas such as antibody-drug conjugates (ADCs), bispecific antibodies, small molecules, nucleic acid therapeutics, and AI-assisted R&D, Chinese enterprises have already developed a portfolio of innovative assets with global potential.

For multinational pharmaceutical companies, China’s value is expanding from “market size” to “source of innovation.”

This is also why major global pharmaceutical companies have been strengthening their presence in China in recent years.

For example, Pfizer has consistently sought external innovation opportunities through collaborations in recent years, focusing on Chinese innovative assets in oncology, immunology, and other fields; Merck & Co. has continuously strengthened its partnerships with Chinese innovative enterprises, acquiring global high-potential projects through licensing deals and strategic collaborations; companies such as Novartis, Roche, and Sanofi have further connected with China’s innovation ecosystem through R&D centers, investments, and business development (BD) collaborations.

The common shift among these enterprises is that their relationship with China is gradually transitioning from a purely market-based one to an industrial partnership.

In the past, multinational pharmaceutical companies needed the Chinese market to address sales growth; today, they need Chinese capabilities to tackle global innovation and industrial competition.

AstraZeneca’s strategic footprint in China in recent years is particularly representative. Unlike some companies that primarily secure projects through isolated, point-specific collaborations, AstraZeneca is working to integrate China into its global innovation ecosystem. From licensing innovative drugs and engaging in R&D collaborations to jointly building a production base with CSPC, AstraZeneca’s presence in China demonstrates a clear trend toward deepening and vertical integration.

Behind this strategy lies AstraZeneca’s own developmental needs.

The global pharmaceutical industry is undergoing a transformation in its R&D models. In the past, large pharmaceutical companies relied on internal R&D systems to drive growth. However, as the complexity of innovation increases, relying solely on internal R&D has become increasingly insufficient to meet future competitive demands. Therefore, acquiring innovative resources through external collaborations has become an important strategy for global pharmaceutical companies.

Chinese enterprises happen to provide this type of external innovation resource.

CSPC is a typical case in point.

For AstraZeneca, the appeal of CSPC lies not in any single project, but in its comprehensive capabilities behind it. CSPC possesses both an innovative drug R&D system and large-scale industrial capacity, along with experience in long-term investment and international cooperation. This corporate capability aligns with the trend of multinational pharmaceutical companies shifting from merely acquiring assets to jointly building capabilities.

From a longer-term perspective, the modes of collaboration between multinational pharmaceutical companies and Chinese enterprises will continue to evolve.

In the past, collaborations primarily revolved around single-product licensing, with Chinese companies demonstrating their R&D capabilities through license-out deals. Subsequently, cooperation gradually expanded to include technology platforms and strategic R&D. In the future, more collaborations are likely to center on industrial systems, global supply chains, and innovation ecosystems.

The establishment of a joint venture between CSPC and AstraZeneca is a landmark case under this trend.

It reflects not only an escalation in the relationship between the two companies, but also a broader realignment of the global pharmaceutical industry chain. In this process, China is no longer merely a market where global pharmaceutical companies seek growth opportunities; it is also becoming a key participant in the global innovation and manufacturing ecosystem.

For Chinese pharmaceutical companies, this also signifies that international competition has entered a new phase. In the future, merely possessing a licensable product will no longer be sufficient to sustain long-term global competitiveness. Companies of true value must simultaneously possess continuous innovation capabilities, international R&D capabilities, and industrial capabilities to connect with global markets.

The collaboration between AstraZeneca and CSPC sends a clear core message: the global pharmaceutical industry is reevaluating China, while Chinese companies are transitioning from merely participating in global competition to actively contributing to the construction of the global industrial ecosystem.