Frequent FIC/BIC deals, accelerated domestic regulation, and growing international attention—a clear trend is emerging: China’s innovative drugs are no longer followers but a significant variable in the global pharmaceutical value chain. However, “the true value of innovation now determines the success of going global.” China’s drug innovation is no longer about individual breakthroughs but a “joint fleet” effort. 

Industry Transformation: Reshaping the Global Value of China’s Innovative Drugs

From the 2015 drug approval reforms to the “year of globalization” in 2020, and now to 2025 with global transactions exceeding $100 billion, China’s innovative drug sector thrives on a triple-driver model: policy support, technological breakthroughs, and ecosystem collaboration. Giants like BeiGene and Hengrui lead global expansion, while newcomers like Akeso and Kelun-Biotech demonstrate China’s shift from “copycat to creator.” 

2025 marks a turning point. In just five months, overseas deals hit $45 billion, nearly matching 2024’s total. This surge reflects two key upgrades: 

• Deal Evolution: License-outs surpassed acquisitions. In 2023, BD upfront payments exceeded IPO fundraising for the first time. 

• Value Recognition: Akeso’s PD-1/VEGF bispecific (Ivonescimab) outperformed Keytruda in head-to-head trials. Sansheng’s PD-1 bispecific set a record for upfront payments, proving global trust in “China-originated innovation.” 

Underlying Challenges: Hidden Risks Amid the Boom

1. Model Evolution: From License-outs to NewCos

• License-outs: Chinese firms sell overseas rights for upfront and milestone payments. In 2024, deals totaled $19.7B, 30% of global BD transactions. 

• Hengrui: Licensed GLP-1 portfolio to Hercules for $6B, pioneering an “equity + milestone” model. 

• Boatmed: Secured $4.165B from Novartis for cardiovascular drugs, setting a biotech record. 

• NewCos: Joint ventures mitigate geopolitical risks. Hengrui and Innovent spun off pipelines for global incubation. 

• Reverse Mergers & Licensing: Chinese firms now sell tech. ProfoundBio’s $1.8B ADC deal with Genmab and Linxen’s $588M PD-L1/VEGF bispecific deal with Merck shattered old norms. 

2. Tech Breakthroughs: China’s Solutions in ADC, Bispecifics, and Cell Therapy

• ADCs: China holds nearly half of global R&D. Kelun-Biotech’s TROP2 ADC and Bio-Thera’s EGFR/c-MET bispecific ADC set deal records. 

• Bispecifics: Akeso’s PD-1/CTLA-4 bispecific gained U.S. approval. Innovent’s PD-1/VEGF bispecific earned $2.7B from Eli Lilly. 

• Cell/Gene Therapy: Legend Biotech’s CAR-T sales topped $500M. CARsgen’s solid-tumor CAR-T entered FDA priority review. 

3. Market Expansion: From “Western Strongholds” to “Emerging Markets”

• U.S./EU: FDA/NMPA dual submissions and MRCTs speed entry. BeiGene built R&D hubs abroad. Junshi’s toripalimab became the first China-made PD-1 approved in the U.S. 

• Emerging Markets: HLX’s PD-1 launched in Indonesia. WuXi Biologics’ Singapore plant targets ASEAN. Localized production is key. 

4. Ecosystem Synergy: The R&D-Capital-Policy Loop

• Policy: State Council’s “full-chain innovation drug support” prioritizes reviews and global recognition. Reimbursement reforms lower barriers. 

• Capital: Healthcare funding surpassed $200B in 2024. Sequoia and Hillhouse launched overseas funds. 

• Supply Chain: WuXi AppTec and Pharmaron offer end-to-end R&D. China’s trial costs are 1/3 of the West’s, attracting Novartis and Roche. 

The Next Decade: Four Key Trends

1. Tech Shift: From “Fast-Follow” to “First-in-Class”

• AI Drug Discovery: Insilico’s AI platform generated 100+ preclinical candidates. Exscientia’s AI-designed drug entered Phase II. 

• SynBio: Rebooting drug materials with cost-efficient bioengineering. 

2. Market Shift: From Solo Wins to Shared Growth

• Regional Alliances: Chinese and global pharma form “Belt and Road” coalitions to share trial data and regulatory insights. 

• Standard Setting: WHO adopted China-led TCM standards. Lianhua Qingwen is approved in 50 countries. 

3. Capital Shift: From Funding Reliance to Profitability

• Profit Milestones: BeiGene and Innovent turned profitable in 2024. R&D spending dropped from 25% to 18%. 

• Exit Diversity: SPACs and M&As rise. Kelun-Biotech’s $9B sale to Merck set a record. 

4. Globalization 2.0: Building Multinational Capabilities

Biotech’s “Manhattan Moment”

From policy reforms in 2015 to global leadership in 2025, China’s decade-long journey mirrors its rise from a “drug manufacturer” to a “drug innovator.” With breakthroughs in AI, gene editing, and cell therapy, China is set to define global standards. 

As Goldman Sachs notes: “Chinese innovators are shifting from price wars to value creation. In a decade, more Chinese names will rank among the global top 10.” This isn’t just corporate success—it’s China’s pledge to global health. 

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