Daiichi Sankyo Partners with Innovent for Commercialization of Newly Approved Quizartinib in China, Signaling a Strategic Shift in Market Approach

From approval to commercialization in just 60 days, multinational pharmaceutical companies are changing their strategies in China.

August 10, 2026, Innovent and Daiichi Sankyo announced that the two parties have reached an agreement regarding Vanflyta® (Quezatinib Hydrochloride Tablets) has reached an exclusive promotional agreement in the mainland China market. Notably, this comes just about 60 days after Vanflyta® was approved for marketing in June this year. An innovative drug that has just entered the Chinese market quickly finalized its commercialization partnership, reflecting how multinational pharmaceutical companies are rethinking their approach to entering China’s innovative drug market.

Under the agreement, Daiichi Sankyo continues to be responsible for Vanflyta®'s clinical development, manufacturing, and supply, Innovent has obtained the exclusive promotion rights for the Chinese mainland market, responsible for marketing and commercial operations. This model differs from the traditional fully self-built systems of multinational pharmaceutical companies in the Chinese market, instead combining global innovation capabilities with local commercialization capabilities.

Vanflyta® is an oral, highly effective Type II FLT3 inhibitor that selectively targets FLT3-ITD mutations and is applicable to adult patients with newly diagnosed FLT3-ITD-positive acute myeloid leukemia (AML). As the first globally approved FLT3 inhibitor for this patient population, this product has clear clinical value. However, for Daiichi Sankyo, the real challenge is not whether the product can be approved, but how to rapidly complete market education, hospital coverage, and patient reach for an innovative drug in a specialized field.

In the past, multinational pharmaceutical companies entering the Chinese market relied primarily on their own commercial teams to manage the entire process from registration to sales. However, with accelerating competition in China’s innovative drug sector, the rising commercialization capabilities of local enterprises, and evolving market conditions for innovative therapies, an increasing number of multinational pharmaceutical companies are seeking more efficient commercialization pathways.

From AstraZeneca and MSD to Daiichi Sankyo, multinational pharmaceutical companies are shifting from “operating independently in the Chinese market” to “integrating into China’s pharmaceutical ecosystem.” The collaboration between Vanflyta® and Innovent has also become an important case study for observing changes in the China business models of global pharmaceutical companies, and more enterprises may join in the future.

Over the past few decades, multinational pharmaceutical companies have entered the Chinese market by leveraging their robust global R&D capabilities and mature commercial systems. For most innovative drugs, overseas companies hold a clear first-mover advantage, enabling rapid commercialization in China through global clinical data, brand influence, and long-established physician networks.

Therefore, building in-house teams has always been the mainstream choice for multinational pharmaceutical companies.

Pfizer, AstraZeneca, Roche, Novartis, and other companies have all invested over many years to establish in China a comprehensive system covering market access, medical affairs, sales and promotion, and patient education. The advantage of this model lies in its strong control, ensuring alignment between global product strategy and execution in the Chinese market.

But today, profound changes have taken place in China’s pharmaceutical market.

First, Chinese innovative drug companies are reshaping the competitive landscape.

In the past, Chinese companies primarily served as manufacturing hubs and outsourced R&D partners, with the core participants in the global innovative drug competition mainly coming from enterprises in Europe, the United States, and Japan. However, in recent years, Chinese innovative pharmaceutical companies have grown rapidly, continuously launching products with global competitiveness in multiple fields such as oncology, autoimmune diseases, and metabolic disorders.

Meanwhile, Chinese enterprises are no longer content with focusing solely on R&D; they have begun building their own commercial ecosystems. Led by companies such as Innovent, BeiGene, and Jiangsu Hengrui Medicine, Chinese innovative pharmaceutical firms are developing commercial capabilities that encompass a nationwide network of hospitals, key opinion leaders, and market access systems.

This means that multinational pharmaceutical companies are no longer facing a market waiting for overseas innovative drugs to enter, but rather one characterized by mature domestic innovators and intense product competition.

Secondly, the commercialization of innovative drugs in China is becoming increasingly challenging.

Approval of an innovative drug does not guarantee commercial success. Particularly in the fields of oncology and hematologic diseases, market competition has evolved from a focus on “drug availability” to “who can reach patients faster and more precisely.” Inclusion in the national medical insurance system requires navigating price negotiations; hospital access demands completion of formulary inclusion procedures; physician adoption necessitates sustained medical education; and maximizing patient benefit requires establishing a comprehensive disease management system.

These stages all test a company’s local operational capabilities.

Vanflyta® located in the AML field is more evident. The AML field pertains to highly specialized disease areas. Although the patient population is limited compared to common cancers such as lung cancer and breast cancer, treatment is highly concentrated in the hematology departments of large hospitals. The commercialization of innovative drugs is not merely about establishing a sales network; rather, it requires identifying core treatment centers, building long-term collaborations with experts, and continuously promoting clinical awareness.

Therefore, for Daiichi Sankyo, the most critical question is not “whether one has the capacity to sell,” but rather “how to sell with maximum efficiency.” In this context, partnering with Chinese innovative pharmaceutical companies that already possess established commercial systems has become a choice more aligned with market dynamics.

Innovent is precisely such a collaborative partner. After years of development, Innovent has established a commercial team covering the oncology sector and accumulated market promotion experience through the launch of multiple innovative drugs. In this collaboration, Daiichi Sankyo is responsible for R&D, supply, and product strategy, while Innovent handles marketing in the Chinese market, creating a complementary advantage for both parties.

This essentially represents a new commercialization logic: multinational pharmaceutical companies control global innovation resources, while Chinese companies provide local market efficiency.

Daiichi Sankyo is not a multinational pharmaceutical company lacking commercial capabilities in China.

In recent years, Daiichi Sankyo has rapidly risen in the global pharmaceutical market, especially in the ADC field, it has become a significant force in the global competition for innovative oncology drugs through products such as trastuzumab deruxtecan. The Chinese market has always held important strategic significance for Daiichi Sankyo.

Therefore, entrusting commercialization of Vanflyta® to Innovent does not signify a reduction in investment in China, but rather the adoption of more precise market strategies tailored to different products.

In fact, there is no one-size-fits-all approach to the commercialization of innovative drugs. For major oncology products—such as those with broad patient coverage and a large market size—building an in-house commercial team can maximize a company’s resource advantages.

However, for such niche products such as AML, the commercialization logic is entirely different. What companies need is specialized market coverage, not simply expanding sales scale. Those who can more rapidly connect with core hospitals, influence key opinion leaders, and drive clinical adoption are more likely to win the market.

This is also where Innovent’s strength lies.

Over the past few years, Chinese innovative pharmaceutical companies have undergone a transformation from "R&D-driven" to "commercialization-driven." In the early stages, Chinese companies rapidly learned from international innovative drug development models through licensing-in; subsequently, gradually build comprehensive capabilities through independent R&D and commercialization practices.

Today, leading Chinese innovative pharmaceutical companies have already acquired the capability to undertake the global commercialization of innovative products.

Innovent is a key representative of this trend. From initially licensing in international innovative products, to establishing its own R&D system, and then building a commercial team, Innovent has completed its transformation from a mere partner into a comprehensive innovative pharmaceutical company.

For multinational pharmaceutical companies, this signifies a shift in the value proposition of Chinese enterprises. In the past, Chinese firms primarily assisted multinationals with manufacturing, sales, or market entry; today, they are becoming pivotal nodes in realizing the commercial value of global innovative drugs.

This shift is also driving multinational pharmaceutical companies to adjust their strategies in China.

AstraZeneca’s strategic layout in China in recent years serves as a typical case. In the past, AstraZeneca primarily relied on its own teams to drive product sales; however, in recent years, its China strategy has clearly expanded toward industrial ecosystem collaboration. From product partnerships and manufacturing to establishing joint venture platforms with Chinese enterprises, AstraZeneca is exploring a more deeply localized model.

The previous establishment of a biologics manufacturing base by AstraZeneca and CSPC Pharmaceutical Group exemplifies this trend. For multinational pharmaceutical companies, China is no longer merely a sales market but has become an integral component of the global innovation ecosystem. Therefore, seeking Chinese partners no longer implies relinquishing control; rather, it represents a strategic choice to enhance efficiency.

The collaboration between Daiichi Sankyo and Innovent, on the surface, represents a transfer of commercialization rights for an innovative drug. However, its deeper significance lies in the evolving role of Chinese innovative pharmaceutical companies within the global pharmaceutical industry chain. For a long period in the past, Chinese enterprises were primarily involved in specific segments such as manufacturing, contract research and development (CRO), or out-licensing deals, with the core value creation of global innovative drugs concentrated in the hands of multinational pharmaceutical corporations. Yet, with the rapid development of China’s innovative drug industry, the logic of industrial competition is shifting. Chinese companies are transitioning from being mere “participants in global drug innovation” to becoming “key partners in unlocking the value of global innovative drugs.”

This shift is first reflected in enhanced commercialization capabilities.

In the past, the core competitiveness of Chinese pharmaceutical companies often lay in their cost advantages and manufacturing capabilities. However, in recent years, as a cohort of innovative drug enterprises has successfully bridged the gap from R&D to commercialization, Chinese firms have established comprehensive systems encompassing market access, medical promotion, hospital networks, and patient services. For global pharmaceutical companies, these capabilities are becoming increasingly valuable when entering the Chinese market. Especially in the field of innovative drugs, commercialization capability is becoming a crucial factor determining product lifecycle.

From the successful global development of an innovative drug to its tangible benefits for patients, there is a substantial translation process. R&D addresses the question of “whether a drug exists,” while commercialization resolves “how the drug is accessed and used by patients.” In the past, multinational pharmaceutical companies could complete this process leveraging their mature systems. However, as the complexity of the Chinese market increases, relying solely on global experience is no longer sufficient to meet local needs.

The Chinese healthcare system has its own unique characteristics, and hospital access, medical insurance payment, physician education, and regional market development all require a deep understanding from enterprises. For multinational pharmaceutical companies, even if they possess globally leading innovative products, the full value of these products may not be realized without precise operations in the Chinese market.

Therefore, Chinese innovative drug companies are becoming an important bridge connecting global innovation with the Chinese market.

The collaboration between Vanflyta® and Innovent is essentially a manifestation of this trend. Daiichi Sankyo possesses global innovative resources and product development capabilities, while Innovent has a deep understanding of the Chinese market and strong commercial execution capabilities. Through their partnership, an innovative drug targeting specialized disease areas can reach target patients more rapidly.

This model is likely to become increasingly common in the future.

In fact, in recent years, there has been a noticeable shift in the way multinational pharmaceutical companies collaborate in China. In the past, when entering the Chinese market, these companies predominantly adopted a model of "building their own teams and handling sales independently." However, with the increasing number of products, changes in the competitive landscape, and rising commercialization costs, companies are now placing greater emphasis on return-on-investment efficiency.

For large multinational pharmaceutical companies, not all products require the same commercialization strategy. For certain blockbuster drugs with vast market potential, companies often opt for in-house operations. However, for innovative therapies in niche segments—such as those targeting hematologic malignancies, rare diseases, and autoimmune disorders—collaborating with locally established partners possessing specialized expertise may prove more efficient, given the limited patient populations and the high demands for market education.

This is also why an increasing number of multinational pharmaceutical companies have begun to redefine the value of their Chinese partners in recent years.

In the past, Chinese companies were often viewed merely as channel resources for multinational pharmaceutical enterprises entering the Chinese market; today, leading Chinese innovative drug companies are becoming an integral part of global pharmaceutical companies’ China strategies.

This shift in roles also signals that competition within China’s pharmaceutical industry has entered a new phase. In the future, competition among Chinese pharmaceutical companies will not only be about the quantity of R&D pipelines but also about the strength of their commercialization systems. Those who can more rapidly convert innovative value into market success will secure a higher position in the global pharmaceutical industry chain.

For multinational pharmaceutical companies, future strategies in the Chinese market are likely to become more diversified. Some products will continue to adopt a self-commercialization model, while others may enter the market rapidly through collaborations. Companies need to select the most suitable commercial pathway based on product characteristics, disease areas, and market stages.

From this perspective, the collaboration between Daiichi Sankyo and Innovent is not a case of “joining them if you can’t beat them.” On the contrary, it represents a strategic adjustment to proactively adapt to market changes.

In the past, multinational pharmaceutical companies entered the Chinese market by leveraging their global systems; in the future, their development in China will increasingly rely on local ecosystem partners.Chinese innovative drug companies are also undergoing a role transformation: from previously waiting for global pharmaceutical companies to grant licenses, they have become an important force in helping global innovative drugs realize their commercial value.

Whether Vanflyta® can ultimately reshape the treatment landscape for patients with FLT3-ITD-positive AML remains to be validated through long-term market adoption. However, this collaboration has sent a more significant industry signal: the Chinese pharmaceutical market is entering a new era of cooperation.

In this era, the integration of global innovation capabilities with China’s commercialization prowess will become a key model for driving the successful launch of innovative drugs. For multinational pharmaceutical companies, China is no longer merely a sales market to enter, but an innovation ecosystem requiring deep collaboration; for Chinese enterprises, commercialization capability is emerging as a new competitive advantage in ascending to the core of the global pharmaceutical industry.

The collaboration between Daiichi Sankyo and Innovent may merely mark the beginning of this trend. In the future, more global innovative drugs are likely to follow a similar path: multinational pharmaceutical companies will oversee global R&D and innovation asset management, while Chinese partners will handle market implementation and commercial value realization. China’s pharmaceutical industry is transitioning from merely “adopting global innovations” to actively “participating in the creation of global innovation value.”