Chinese firms strike multiple billion-dollar licensing deals in 2025 as the country emerges as a major pharma exporter
China’s biopharmaceutical industry is entering a new era of global influence, having secured a wave of billion-dollar licensing agreements with major international drug companies this year.
These deals mark a decisive shift: Chinese firms are no longer just catching up, they are now shaping the direction of global pharmaceutical innovation.
In December 2022 one landmark accord saw US drug-maker MSD licence global (ex-China) rights to seven antibody-drug conjugate (ADC) cancer candidates from Sichuan Kelun‑Biotech Biopharmaceutical for an upfront payment of US$175 million and potential milestone payments of up to US$9.3 billion.
Analysts regard that deal as the turning point for China’s export-oriented biotech ambitions.
By the first eight months of 2025 Chinese biotech companies had concluded at least 93 overseas licensing agreements totalling approximately US$85 billion in potential value—demonstrating how China has become a major exporter of innovative medicines, rather than merely a manufacturing base for foreign drugs.
Much of the momentum is rooted in oncology: ADCs, bispecific antibodies and other high-complexity therapies developed in China are now attracting global investment at scale.
One estimate projects China’s outbound licensing activity may reach US$60 billion across more than 150 deals by year-end.
Several structural factors underpin this surge: improved R&D capabilities in China, regulatory reforms that accelerate development and approval, and cost advantages that make Chinese-origin assets attractive to Western pharmaceutical companies facing pressure from patent expiries and pricing constraints.
In the first quarter of 2025 China accounted for 32 % of global out-licensing value, up from 21 % the previous year.
Although concerns remain—including regulatory scrutiny overseas, supply-chain tension and domestic pricing pressures—Chinese biotechs are increasingly positioned as sources of high-value assets.
Their transformation from generic-drug makers into global innovators signals a major strategic shift in the international drug-development ecosystem.
The broader implication is that global pharmaceutical firms must now engage China not simply as a market but as a partner in research and innovation.
With more high-value deals expected, China’s biotech industry is stepping into a new role as a pillar of the global drug pipeline and a key driver of medical innovation.
The pace and scale of these licensing agreements suggest that the age of China as a purely manufacturing powerhouse is coming to an end—and it is becoming a strategic collaborator in defining the next generation of therapies.
These deals mark a decisive shift: Chinese firms are no longer just catching up, they are now shaping the direction of global pharmaceutical innovation.
In December 2022 one landmark accord saw US drug-maker MSD licence global (ex-China) rights to seven antibody-drug conjugate (ADC) cancer candidates from Sichuan Kelun‑Biotech Biopharmaceutical for an upfront payment of US$175 million and potential milestone payments of up to US$9.3 billion.
Analysts regard that deal as the turning point for China’s export-oriented biotech ambitions.
By the first eight months of 2025 Chinese biotech companies had concluded at least 93 overseas licensing agreements totalling approximately US$85 billion in potential value—demonstrating how China has become a major exporter of innovative medicines, rather than merely a manufacturing base for foreign drugs.
Much of the momentum is rooted in oncology: ADCs, bispecific antibodies and other high-complexity therapies developed in China are now attracting global investment at scale.
One estimate projects China’s outbound licensing activity may reach US$60 billion across more than 150 deals by year-end.
Several structural factors underpin this surge: improved R&D capabilities in China, regulatory reforms that accelerate development and approval, and cost advantages that make Chinese-origin assets attractive to Western pharmaceutical companies facing pressure from patent expiries and pricing constraints.
In the first quarter of 2025 China accounted for 32 % of global out-licensing value, up from 21 % the previous year.
Although concerns remain—including regulatory scrutiny overseas, supply-chain tension and domestic pricing pressures—Chinese biotechs are increasingly positioned as sources of high-value assets.
Their transformation from generic-drug makers into global innovators signals a major strategic shift in the international drug-development ecosystem.
The broader implication is that global pharmaceutical firms must now engage China not simply as a market but as a partner in research and innovation.
With more high-value deals expected, China’s biotech industry is stepping into a new role as a pillar of the global drug pipeline and a key driver of medical innovation.
The pace and scale of these licensing agreements suggest that the age of China as a purely manufacturing powerhouse is coming to an end—and it is becoming a strategic collaborator in defining the next generation of therapies.







































