Licensing-Out Deals Surge as Chinese Innovative Drugs Accelerate Global Expansion

Recently, Hansoh Pharma announced that it has granted Regeneron Pharmaceuticals, Inc. (Regeneron) an exclusive overseas license for the GLP-1/GIP dual receptor agonist HS-20094, which is currently under development. Notably, there has been a streak of good news regarding the international expansion of innovative drugs produced in China. Not long ago, Guojian Pharmaceutical, 3SBio Inc., and Shenyang 3SBio reached a licensing agreement with Pfizer for the PD-1/VEGF bispecific antibody SSGJ-707. The "upfront payment of $1.25 billion" from this licensing deal set a new record for the highest upfront payment for the international expansion of innovative drugs produced in China. Recently, CSPC Pharmaceutical Group announced that the group is currently in negotiations for three potential deals, one of which is already in its later stages.

Medcube Data Shows: In the First Quarter of 2025, Chinese Pharmaceutical Companies Completed 33 License-Out Deals, with a Total Transaction Value of $36.633 Billion, Increasing by Approximately 258% Year-on-Year. Industry Insiders Indicate That Chinese Pharmaceutical Companies Are Moving to the Forefront of Global Innovative Research and Development. As the Quality of China's Innovative Drug Pipeline Continues to Improve, the Number and Value of Outward Licensing Deals by Chinese Enterprises Are Expected to Maintain Growth in the Future.

　　Multiple pharmaceutical companies disclose outbound licensing deals

According to Hansoh Pharma, HS-20094 is a GLP-1/GIP dual receptor agonist under development. It has successfully completed multiple Phase II clinical trials with positive efficacy and safety data and is currently undergoing Phase III clinical trials in China. Under the agreement, Hansoh Pharma will receive an upfront payment of $80 million and is eligible to receive milestone payments of up to $1.93 billion based on the product’s development, regulatory approval, and commercialization progress, as well as double-digit percentage royalties on future potential product sales.

Sun Yuan, Executive Director of Hansoh Pharma's Board of Directors, stated: "We are very pleased to have reached this licensing and cooperation agreement with Regeneron. We look forward to working together through this partnership to bring HS-20094 to patients around the world as soon as possible."

Notably, recently, several pharmaceutical companies have announced the achievement of out-licensing deals. On May 20, Guojian Pharmaceutical announced that the company and its related parties, 3SBio and Shenyang 3SBio Pharmaceutical Co., Ltd., jointly granted Pfizer exclusive rights to develop, manufacture, and commercialize the licensed product 707 project (SSGJ-707) in the licensed territory (i.e., all countries and regions outside of China) and field (i.e., all therapeutic, diagnostic, and preventive indications for human and veterinary use). Pfizer retains the right to obtain commercialization rights for the licensed product in China by paying an additional fee.

According to the agreement, Pfizer will pay a non-refundable and non-deductible upfront payment of $1.25 billion, milestone payments of up to $4.8 billion for development, regulatory approval, and sales, as well as tiered sales royalties in the double-digit percentage based on product sales in the licensed territories. The "upfront payment of $1.25 billion" from this licensing deal sets a new record for the highest upfront payment for a Chinese-produced innovative drug going overseas.

On May 30, CinoBio and Astellas announced that they had reached an exclusive licensing agreement for XNW27011. According to the terms of the agreement, CinoBio will receive an upfront payment of $130 million and is eligible to receive near-term payments of up to $70 million, as well as milestone payments related to development, registration, and commercialization that could reach up to $1.34 billion.

At the same time, some pharmaceutical companies have disclosed potential out-licensing deals. On May 30, CSPC Pharmaceutical Group announced on the Hong Kong Stock Exchange that the group is currently in negotiations with several independent third parties regarding three potential transactions. These involve licensing and cooperation in the development, production, and commercialization of certain products from the group (including Epidermal Growth Factor Receptor Antibody-Drug Conjugates and other drugs developed through the group’s technology platforms). For each potential transaction, the potential upfront payments, potential development milestone payments, and potential commercialization milestone payments that may be payable to the group could total approximately US$5 billion. One of the three potential transactions has now reached an advanced stage.

　International Competitiveness Continues to Strengthen

At the recently held 2025 American Society of Clinical Oncology (ASCO) Annual Meeting, more than 70 original research achievements from China were selected. "After more than a decade of development, China's innovative drugs have reached the center stage of the international arena," stated Guotai Haitong Securities in a report.

For example, 12 clinical studies from China Biologic Products have been selected for the ASCO "oral presentation." Among them, the company's "Defu Combination" (Bemarituzumab + Anlotinib Capsules) Phase III clinical trial data for first-line treatment of locally advanced or metastatic squamous non-small cell lung cancer was published for the first time, with a median progression-free survival of 10.12 months, head-to-head defeating the comparator drug. This is also the first Phase III clinical study in the industry to achieve positive results comparing immune checkpoint inhibitors combined with chemotherapy for first-line treatment of squamous non-small cell lung cancer.

Hengrui Medicine has participated in the ASCO Annual Meeting for 15 consecutive years. According to Hengrui Medicine, at this year's ASCO Annual Meeting, four of the company’s studies were selected for oral presentation, and five studies were selected for rapid oral presentation. The innovative drug achievements cover multiple cutting-edge treatment areas. Their academic value and clinical significance have been highly recognized by international peers, reflecting the company's internationally leading level in the field of anti-tumor new drug research and development. Moreover, it has demonstrated to the global academic community the strong innovation capabilities of China's pharmaceutical industry.

At this year's ASCO Annual Meeting, BeiGene also presented several groundbreaking research findings. Among them, the company shared new data from the pivotal global Phase 3 SEQUOIA trial Cohort C and D of Brukinsa (zanubrutinib). The company stated that these data highlight the robust and consistent efficacy of Brukinsa in treating various types of chronic lymphocytic leukemia patients, including those with high-risk mutations.

Dizge Pharma stated that at this year's ASCO Annual Meeting, the company’s two self-developed, innovative products, DZD8586 and DZD6008, showcased their latest research advancements in the fields of B-cell non-Hodgkin lymphoma and non-small cell lung cancer, highlighting the company's new competitive advantages in global differentiated competition in hematological tumors and lung cancer.

CITIC Securities stated that Chinese pharmaceutical companies have made significant progress at this year's ASCO conference, rapidly advancing to the forefront of global innovative research and development. Some products are venturing into indications where there were previously no effective treatments, using novel mechanisms to explore new market opportunities; other innovative drugs are boldly challenging the current SOC (Standard of Care), aiming for broader applications with higher therapeutic standards.

　Industry prosperity is expected to steadily recover

Data from the PharmaCube shows that in 2024, Chinese pharmaceutical companies completed 94 license-out deals with a total transaction value of $51.9 billion, increasing by approximately 26% year-on-year. In the first quarter of 2025, Chinese pharmaceutical enterprises completed 33 license-out transactions with a total transaction amount of $36.633 billion, marking a year-on-year increase of approximately 258%.

"In recent years, domestically produced innovative drugs have become increasingly globally valuable. As the clinical data and progress of these drugs gain stronger competitiveness worldwide, the trend of exporting innovative drugs continues to strengthen," Guoxin Securities stated.

Dongwu Securities analysts noted that, influenced by internal and external factors, China's innovative drug out-licensing deals have entered a boom period. Internally, the R&D capabilities of Chinese pharmaceutical companies' pipelines continue to improve, placing China among the top tier of drug developers globally. Externally, clinical R&D alignment with international standards, along with collaborative efforts between regulatory agencies and enterprises, has significantly increased global pharmaceutical companies' trust in China’s innovative drug pipelines. As the quality of China's innovative drug pipelines continues to rise, the number and value of out-licensing deals by Chinese companies are expected to maintain growth. Upfront payments, milestone payments, and subsequent sales royalties from these out-licensing deals will contribute to ongoing profits for domestic pharmaceutical companies.

"Overall, under the influence of policy support and overseas breakthroughs, the innovative drug sector is becoming an important and highly growth-oriented innovative track within the technology sector," Dongwu Securities further stated.

Great Wall Securities stated that the pharmaceuticals industry is expected to see a steady recovery in activity. In the medium to long term, there is significant demand for innovative therapies, and the number and quality of domestically produced innovative drugs are steadily improving. It is recommended to focus on pharmaceutical companies with excellent management efficiency and high-quality product pipelines.