At a Glance
- Companies: Jiangsu Hengrui ($16.7bn), GeneQuantum ($13bn), Innovent (>10bn), 3SBio ($6bn)
- Location: China (157 deals with global pharmas)
- Deal value: $135.7bn total (up from $51.9bn in 94 deals 2024); top 10 firms 60%
- Focus areas: ADCs, bispecifics, immunotherapy, oncology, autoimmune
- Next steps: Continued momentum into 2026 with 76 innovative approvals in 2025
What happened?
Chinese pharmaceutical companies achieved a record $135.7 billion in cross‑border out‑licensing deals across 157 agreements in 2025, more than doubling the $51.9 billion from 94 deals in 2024. JPM26 highlighted ongoing momentum, with China establishing itself as a global innovation hub for next‑generation biologics.
Why does it matter?
Global pharmas raced to Chinese assets to combat patent cliffs, tapping China’s antibody engineering prowess for first/best‑in‑class ADCs and bispecifics. 2025 saw 76 innovative drug approvals in China, fuelling the pipeline surge and demonstrating regulatory support for international partnerships despite geopolitical tensions.
Who’s behind it?
Jiangsu Hengrui led with $16.7bn, including GSK’s $12bn for 12 respiratory/autoimmune/oncology drugs ($500m upfront). GeneQuantum’s $13bn Biohaven/AimedBio ADC deal was the largest single pact; Innovent’s Takeda PD‑1/IL‑2 bispecific topped $11.4bn; 3SBio’s Pfizer bispecific fetched $1.25bn upfront + $4.8bn milestones.
How was it achieved?
Out‑licensing lets Chinese firms retain China rights while global partners fund/handle ex‑China development, with structures including massive upfronts ($100m+), milestones ($1bn+), royalties and equity (e.g. Pfizer’s $100m stake in 3SBio). Bispecifics/multispecifics dominated, with 10 China deals alone exceeding $2.6bn upfront.
What’s next?
Analysts expect 2026 continuation as Chinese biotechs prove clinical “proof of signal” cost‑effectively, though US‑China tensions may shift dynamics. JPM26 showcased the trend’s staying power.
What are people saying? (optional)
Experts credit China’s “robust antibody engineering” and rapid validation for the boom. Hengrui’s strategy “fuels revenue growth toward innovation”. GlobalData sees it as patent cliff hedging.