The conference highlighted the growing prominence of Chinese biotech and pharmaceutical companies on the global stage, emphasizing their increasing role in innovation and competitiveness. 

The quality and innovation coming out of Chinese biotechs has significantly improved in recent years, with a shift from mostly follow-on drugs to more first-in-class and best-in-class assets. This is making Chinese-developed assets increasingly attractive for Western companies to in-license. Chinese biotech firms were noted for their significant contributions to global pharmaceutical licensing deals, accounting for one-third of such agreements in 2024. This marks a dramatic rise from negligible levels a decade ago, reflecting the increasing recognition of high-quality science and cost-efficient innovations from China.  

The speed at which Chinese biotechs are able to generate clinical data is a major draw for Western pharma. The ability to get early human validation quickly is a key advantage that is fueling more of these cross-border deals.  This trend is likely to continue, as evidenced by deals such as the Merck in-license of a Chinese-developed obesity drug and PD-1/VEGF bispecific. Western companies see Chinese innovation as an important source to bolster their pipelines, especially as they look to offset upcoming patent cliffs. 

However, there are still some regulatory hurdles, as the FDA has previously rejected some assets based solely on Chinese clinical data. Navigating the regulatory landscape will be an important consideration as these cross-border deals increase. 

Overall, the rise of innovative Chinese biotech is reshaping the global biopharma landscape, providing Western companies with new avenues to access cutting-edge science and accelerate their own pipelines. This trend is expected to be a long-term driver of deal-making and collaboration between the East and West. This highlights the need for deep strategic insights to leverage the particular medical, regulatory and pharma environment of China. As a division of SAI Med Partners, IDEA Pharma can now offer strategic path to market consultancy with global impact, covering both Western and Eastern markets.