China grabs 32% of global biotech deal value in 2025 surge

Licensing deals between Chinese biotechs and multinational drugmakers surged 11% in Q1 2025, with China accounting for 32% of global outlicensing deal value.

Why it matters: U.S. and global pharma companies are turning to China for affordable, innovative drug assets as they face pricing pressure and looming patent cliffs.

Backstory: Just a few years ago, China represented a small share of global licensing deals (only 8% in 2021). But strong government support, a streamlined regulatory path, and credible clinical data have transformed the nation into a key player.

Big picture: China is becoming a global hub for drug development. It offers biopharmas lower costs (upfront payments 60–70% lower than global peers) and faster development timelines (12 to 20 months from drug discovery to trial compared to 24 to 26 months globally), making it a strategic alternative amid financial and regulatory headwinds in the West.

High throughput: Since 2022, China biotechs have developed 639 first-in-class drug candidates, a 360% jump from 2018–2021. The U.S., Europe and Japan only show a 100% to 150% growth in new first-in-class assets.

Who’s benefiting: The major dealmakers active in China are Bristol Myers Squibb, Roche, Merck & Co., Pfizer, and Gilead. Their preferred focus areas are the usual suspects: oncology (especially PD-1/VEGF bispecifics and ADCs), autoimmune, cardiovascular and most importantly, metabolism diseases with over 60 weight-loss drug candidates in advanced trials.