Global Times｜Capital market boom underscores global potential of China's innovative drugs
The recent uptick in the performance of A-share and Hong Kong-listed biotech stocks, particularly those related to innovative drugs, mirrors the trend toward a faster internationalization of China's pharmaceutical sector. As reported by the Securities Times, the biotech sector in China's A-share market rose on Thursday afternoon, with the concept of innovative drugs attracting fresh interest. In the Hong Kong stock market, several stocks rose, including Sino Biopharmaceutical.
Lei Ming, who is responsible for handling capital markets at Sino Biopharmaceutical, said at the 46th Goldman Sachs Global Healthcare Conference held in Miami, the US on Wednesday that the company has several assets with the potential for foreign licensing, and one of these assets is expected to lead to a landmark and significant outbound licensing deal, according to the Securities Times.
Buoyed by this news, the A-share innovative pharmaceutical sector became active again during afternoon trading, with several companies reaching their daily limits. China Securities said that it is optimistic about the technology-driven cycle of the innovative pharmaceutical industry in China.
Some industry experts said that progress in international expansion, coupled with policy backing, is acting as a catalyst for the revaluation of innovative drugs.
In recent years, China's domestic innovative drugs have increasingly been involved in international transactions.
According to a report published on nature.com, although China has not traditionally been a hub for developing first-in-class or best-in-class therapies for Western markets, a recent report by the investment bank Stifel found that in 2024, major pharmaceutical companies in-licensed 31 percent of their innovative pipeline assets from China.
Growth has remained strong in 2025. According to the China Securities Journal, citing data from PHARMCUBE, Chinese pharmaceutical companies have completed 33 license-out deals in the first quarter, with the total transaction value reaching $36.63 billion, up about 258 percent year-on-year. Industry insiders note that Chinese pharmaceutical firms are advancing toward the forefront of international innovation and research.
The increase in the total value of license-out deals for China's innovative drugs not only brings substantial economic benefits to domestic pharmaceutical companies but also has a positive impact on the global pharmaceutical industry. The growing interest from the capital markets in Chinese innovative pharmaceutical companies reflects investors' confidence in this mutually beneficial model and the technology-driven growth of China's pharmaceutical sector.
The surge in license-out agreements is a testament to the country's growing expertise in drug development, offering multiple benefits to the global healthcare industry.
First, the quality of Chinese innovative drugs has seen improvements, reaching international standards in areas such as bispecific antibodies. Through license-out deals, global pharmaceutical companies can quickly access these innovative products, enriching their global product pipelines and addressing unmet clinical needs more effectively.
Second, some Chinese innovative drugs offer cost advantages in research and agreement (R&D) and production. International companies can leverage these advancements through license-out deals, reducing their own R&D timelines and costs, and enhancing overall R&D efficiency.
Third, license-out deals introduce a more diverse range of options to international markets, fostering the development of a global innovation ecosystem in healthcare.
The internationalization of Chinese innovative drugs is poised to drive global pharmaceutical market growth, benefiting patients worldwide. This reflects a positive interplay between China's technological advancements and the international pharmaceutical industry, underscoring the mutual benefits of such collaboration.
As China's capacity for technological innovation has grown, so too has its biopharmaceutical sector, characterized by high-value-added technology. This industry has seen the rise of numerous companies with global perspectives and competitive edges, embarking on international expansion through various strategies. Despite these achievements, China's biomanufacturing firms still face some challenges in their internationalization efforts, particularly in navigating the diverse drug approval systems and trade barriers across different countries.
However, what's certain is that the development of innovative drugs in China will not be halted. The capital market's keen interest in this sector reflects its potential for continuous technological advancement and growth.