Chinese Biopharma Hits $41.5 Billion in Licensing Deals US Takes Half

In 2024, Chinese biopharma companies reached a five-year high in licensing agreements, totaling $41.5 billion, a 66% increase compared to 2020. Notably, 50% of these deals were with U.S. pharmaceutical firms, showcasing China's growing influence in the global biopharma landscape.

According to GlobalData Pharma Intelligence, government investments have accelerated faster, more affordable clinical trials, boosting the appeal of Chinese drug innovations. Among the major deals, Merck licensed LaNova Medicines' PD-1/VEGF bispecific antibody LM-299 for $3.28 billion, while Novartis entered a $4.35 billion agreement with Shanghai Argo Biopharmaceutical for an RNA-based cardiovascular treatment.

Oncology, immunology, and metabolic disorders dominated the market, accounting for $22.2 billion in licensing value. Advanced therapies like monoclonal antibodies ($11.3 billion) and antibody-drug conjugates (ADCs, $10 billion) were also highly sought after.

While licensing surged, mergers and acquisitions declined, with licensing emerging as a cost-effective way for global companies to access innovative drugs. Analysts warn, however, that regulatory shifts and potential trade barriers could disrupt these cross-border partnerships, impacting drug costs and global supply chains.