Trump eyes crackdown on U.S. pharma deals with China over security concerns

 A New York Times investigation reveals the Trump administration is considering severe restrictions on U.S. pharmaceutical companies licensing drugs and data from China, citing national security concerns.

Why it matters: If enacted, the move could disrupt a growing pipeline of U.S.-China drug partnerships, impacting drug innovation, trial timelines, and global market strategies.

Backstory: China’s biotech sector has become a major player in drug innovation, accounting for 32% of out-licensing deal value in Q1 2025. U.S. firms like Pfizer have increasingly struck billion-dollar deals with Chinese drugmakers to access innovative therapies.

Big picture: The draft order signals escalating U.S.-China biotech tensions. It proposes national security reviews of licensing deals, tighter FDA scrutiny of Chinese clinical trial data, higher regulatory fees for China-sourced data and preference for U.S.-made drugs in government purchasing.

What’s next: The White House claims it is not “actively considering” the order, though discussions are ongoing. Billionaires and investors with interests in U.S.-based biotechs are reportedly backing the move to counter China’s growing influence.