China’s Biotech Boom Goes Global as Billion-Dollar Drug Deals Surge

China’s Biotech Boom Goes Global as Billion-Dollar Drug Deals Surge

China’s biotechnology industry is rapidly gaining global influence, as a wave of billion-dollar licensing deals with international pharmaceutical companies highlights the country’s growing role in drug innovation. In a late-year surge, several Chinese biotech firms have signed major out-licensing agreements, signaling rising confidence from multinational pharma giants searching for new pipelines.

Global Drugmakers Turn to China for New Medicines

One of the most notable deals involves Jacobio Pharmaceuticals, which disclosed that it expects to receive US$100 million upfront from AstraZeneca, according to a filing with the Hong Kong stock exchange dated December 21.

Under the agreement, AstraZeneca gains exclusive global rights—excluding mainland China, Hong Kong, Macau, and Taiwan—to research, develop, manufacture, and commercialize Jacobio’s experimental cancer drug, JAB-23E73.

Deal Could Reach Nearly US$2 Billion

Beyond the upfront payment, Jacobio stands to earn up to US$1.92 billion in milestone payments, tied to development progress, regulatory approvals, and commercial success. The company will also receive tiered royalties based on future sales.

Such deal structures reflect a growing willingness by global drugmakers to place large financial bets on Chinese-developed therapies—something far less common a decade ago.

Targeting a Key Cancer Mutation

JAB-23E73 is an oral cancer therapy designed to inhibit KRAS, a mutated protein known to drive tumor growth in multiple cancer types. Unlike earlier approaches, the drug aims to selectively target the harmful mutation while sparing similar healthy proteins, potentially reducing side effects.

The drug is currently in Phase I clinical trials in both China and the United States, marking an important step toward global development.

More Cross-Border Deals Follow

Jacobio is not alone. Coherent Biopharma also announced a cross-border licensing agreement on December 22. The company signed an exclusive deal with US-based MultiValent Biotherapies for CBP-1018, a prostate cancer drug candidate.

While financial terms were not fully disclosed, the deal adds to growing evidence that Chinese biotech firms are becoming essential partners in global oncology research.

China’s Biotech Moment

This flurry of late-year deals underscores a broader shift: China is no longer just a manufacturing hub but a source of novel, globally competitive medicines. As multinational pharmaceutical companies face patent cliffs and pipeline gaps, China’s biotech sector is increasingly stepping into the spotlight.

If the trend continues, cross-border licensing could become one of the strongest drivers of China’s biotech growth in the years ahead.