Foreign Media: Chinese biotech companies have received funding support this year due to a large number of cross-border transactions, with some previously loss-making enterprises achieving profitability.
As overseas licensing deals have become a crucial financing method for China's innovative drug companies to advance research and development, clinical trials, and regulatory approvals, their scale has surpassed that of IPOs and pre-IPO financing. The volume of cross-border transactions in China's innovative pharmaceutical sector reached a record high in the first half of the year, amounting to $11 billion across 81 deals—nearly 80% of last year's full-year total.
However, the industry also faces challenges. Global major pharmaceutical companies are beginning to consider reducing transaction budgets and raising acquisition standards, sparking concerns about whether China’s biotech sector can sustain its long-term reliance on overseas licensing revenues.
Analysts believe that despite global competition, China’s innovative drug assets still hold cost advantages. Even if international pharmaceutical firms become more cautious in the future, China’s assets may continue to remain attractive. In contrast, IPO fundraising volumes for Hong Kong and A-shares pharmaceutical companies are significantly smaller.
Original article: toutiao.com/article/1874481728996364/
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