According to Jefferies, one third of all biopharmaceutical licensing spend in 2025 was directed towards drugs originating from China
The Rapid Growth of China’s Biotechnology Sector
Many observers have expressed surprise at the exceptionally swift development of the Chinese biotechnology industry in recent years. However, for those who have regularly visited technology hubs such as Zhangjiang High-Tech Park in Shanghai, Suzhou Industrial Park, or similar innovation zones in Beijing and Shenzhen over the past two decades, this progress may not seem quite so unexpected. Yet the sector was flabbergasted when, at an investor conference in Basel, on 09 October, 2025, Yuwen Liu, founding partner of the BOHE Angel Fund, revealed that “40% of all global pharmaceutical deals now involve a Chinese asset”. Looking ahead, she predicted that “35% of assets currently underpinning prospective US FDA submissions will originate from China.” Having worked closely with Yuwen Liu during her time as CEO of BioBay and Chairwoman of Qiagen Suzhou Translational Medicine, we know that her statements are accurate and always void of braggadocious language.
China’s Leadership in Oncology Drug Approvals
It is worth recalling that as early as 2023, Chinese pharmaceutical companies had already achieved US FDA approval for three innovative oncology medicines: toripalimab, fruquinitinib and ebfemalenograstim.
According to the annual report by oncology experts Vittore Tamassia and Bruno Pagliara, published in the January 2026 issue of MedNous and entitled “Approvals of new oncology drugs rise, led by China,” the trend continued in 2025. The report stated: “In 2025, a total of 35 new cancer drugs were launched, of which 23 were brought to market in China. The number of approved drugs of Chinese origin compared with 10 approved in the US and two in Europe.” China initially made inroads into the US market with so-called “me too” drugs but is now registering innovative treatments. A notable example is the approval by the Chinese National Medical Products Administration (NMPA) of culmerciclib, developed by Sino Biopharmaceutical, described as the “world first inhibitor of three proteins in the cyclin dependent pathway: CDK2, CDK4 and CDK6.”
For the first time in US biotechnology's history, China poses a real competitive challenge.
Recent Data on Licensing Deals
Four months after Liu’s statement, new data has emerged regarding out-licensing agreements. Both Global Data Consulting and Biopharma Dive have reported a marked increase in such deals involving Chinese companies. According to Jefferies, one third of all biopharmaceutical licensing spend in 2025 was directed towards drugs originating from China. Oncology dominated these agreements (28 deals), but there was also significant activity in immunology (19 deals) and metabolic diseases (6 deals).
In the past three months alone, 20 new deals have been identified, with 11 valued at $1 billion or more (attached table). Of these, 10 involved European partners and 10 were linked to US companies. The largest was the agreement signed on 30 January between AstraZeneca and CSPC Pharmaceutical Group, valued at $18.5 billion, followed by the $5.6 billion deal between AbbVie and Remegen on 12 January.
Key Drivers Behind China’s Biotechnology Success
The remarkable rise of the Chinese biotechnology sector can be attributed to several key factors, each contributing to the industry’s rapid progress and global influence.
1. In October 2013, we attended an official delegation led by former French Prime Minister Jean-Pierre Raffarin, which met with several senior Chinese officials, including Health Minister Chen Zu, Vice Minister of External Commerce Zhon Sha, and the Minister of Sciences and Technology (MOST), Wan Gang. During these discussions, the incoming government under President Xi Jinping and Prime Minister Liu Keqiang outlined their ambition for China to become a world leader in ten economic sectors by 2049, with healthcare identified as one of them. Their vision aimed not only to enhance the nation’s well-being but also to elevate China’s biopharmaceutical industry, as articulated by Wan Gang: “We will no longer be the world’s factory but become the world’s laboratory.” This reflected a meticulously planned long-term strategy for the sector’s development.
2. Beginning in 2015, both central and local governments, along with venture capital funds, allocated substantial subsidies to support academic research, innovative biotechnology start-ups, established pharmaceutical companies, Contract Research Organisations (CROs), Contract Development and Manufacturing Organisations (CDMOs), and production facilities. These financial investments were critical in fostering innovation and accelerating sector growth.
3. The Ministry of Science and Technology (MOST), dedicated clusters such as BioBay Shuzhou, business angels, and venture capital funds collaborated to identify leading academic institutions and promising research projects. By providing targeted resources, they successfully transformed these initiatives into viable start-up companies, nurturing a dynamic ecosystem for biotechnology entrepreneurship.
4. These organisations also played a vital role in selecting both Chinese and foreign leaders who could deliver exceptional results, prioritising the development of “first in class” and “best in class” products with an emphasis on rapid delivery. Appointed CEOs were expected to compete vigorously against both domestic and international counterparts to thrive within this competitive environment.
5. The Chinese authorities established the National Medical Products Administration (NMPA), a regulatory body with standards comparable to those of the US FDA and the European Medicines Agency (EMA). This regulatory alignment helped boost confidence in the quality and safety of Chinese pharmaceutical innovations.
6. The rapid construction of modern hospitals, staffed by highly qualified Principal Investigators (PIs), has enabled the recruitment of millions of patients for clinical trials. This capacity facilitates well-controlled multicentre studies, greatly enhancing the efficiency of drug development. As one French CEO collaborating with a Chinese partner noted, “You can recruit ten times more patients in less time than anywhere else in the world.”
Beyond the Visible Leaders
While a few Chinese biotechnology firms are already making headlines with significant product launches and innovations outside of China, they constitute only a small fraction of the sector’s true potential. Beneath this surface, there is a much larger ecosystem of companies and research initiatives that are steadily advancing towards similar achievements. Many enterprises are still developing their capabilities, leveraging government support, academic partnerships, to position themselves for future breakthroughs and aim at becoming global companies. As this broader base matures, it is expected that a wave of new entrants will further amplify China’s influence on the global biotechnology stage, reinforcing the country’s strategic initiative to become a powerhouse in innovation and drug development.
Paris, February 27, 2026
This document has been prepared by Jean-Claude Muller and is provided for information purposes only. The information contained herein has been obtained from sources believed to be reliable but is not warranted to be accurate or complete. The views presented are those of the author at the time of writing and are subject to change. Jean-Claude Muller has no obligation to update these opinions or the information presented.
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