In-Depth: Overseas Licensing of Chinese Innovative Drugs Surges (AI Translation)
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文｜财新周刊 滑昂 陈曦
By Caixin Weekly's Hua Ang, Chen Xi
国产创新药对外交易频繁，似渐入佳境。
Domestic innovative drugs are frequently involved in international transactions, seemingly entering a prime phase.
从数据看，2023年中国创新药交易全面实现“净出口”，国内企业披露的对外授权交易总额突破450亿美元大关。2024年，license-out（对外授权许可）交易的热度仍在持续，仅1月就达成超过15笔交易，披露的首付款总额约3.7亿美元，交易总额则超过百亿美元。
According to data, in 2023, China's innovative drug transactions comprehensively achieved a "net export," with domestic companies disclosing a total of over $45 billion in outbound licensing transactions. In 2024, the enthusiasm for license-out transactions continues, with more than 15 deals concluded in January alone. The disclosed upfront payments amounted to approximately $370 million, while the total transaction value exceeded $10 billion.
实现如此交易数据的大背景是，医药行业投融资“寒冬”已持续两年有余，2023年国内IPO（首次公开募股）则进一步放缓。在2023年中国医药科技论坛上，全国政协经济委员会副主任、中国国际经济交流中心常务副理事长毕井泉发言提到，2018年、2019年中国生物医药领域早期风投和私募募资达到172亿美元，超过美国；2020年、2021年减少到162亿美元，美国则增加到212亿美元；到2022年、2023年（截至当年9月26日），中国降为45亿美元，比2018年至2019年降低84%，美国则继续增加。近三年，中国股市生物医药板块的市值蒸发近6000亿元。
The backdrop to such transaction data is that the investment and financing "winter" in the pharmaceutical industry has persisted for over two years, with domestic IPOs (Initial Public Offerings) further slowing down in 2023. At the 2023 China Pharmaceutical Science and Technology Forum, Bi Jingquan, Deputy Director of the Economic Committee of the National Committee of the Chinese People's Political Consultative Conference and Executive Vice Chairman of the China Center for International Economic Exchanges, noted that early-stage venture capital and private equity financing in China's biopharmaceutical sector reached $17.2 billion in 2018 and 2019, surpassing the United States; however, this figure decreased to $16.2 billion in 2020 and 2021, while it increased to $21.2 billion in the US; by 2022 and 2023 (as of September 26th of that year), China's total fell to $4.5 billion, a reduction of 84% compared to 2018-2019 levels, whereas it continued to rise in the US. Over the past three years, nearly RMB 600 billion ($85 billion) in market value has evaporated from China's stock market biopharmaceutical sector.
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- In 2023, Chinese innovative pharmaceutical companies achieved a "net export" in drug transactions, with disclosed overseas licensing deals surpassing $45 billion. Despite the financing "winter" in the pharma industry and a slowdown in domestic IPOs, these transactions signify a positive development for Chinese pharma companies, providing crucial cash flow during industry downturns and validating their global participation.
- High-profile deals include Baiji Shenzhou's agreement with Bristol Myers Squibb potentially worth up to $8.4 billion for a dual-antibody ADC project, highlighting the shift towards innovative drugs and international market penetration. Additionally, AstraZeneca's acquisition of Conch Biotech for $1.2 billion marks significant foreign interest in Chinese biotech firms.
- The surge in outbound transactions from China is seen as both an opportunity for cash-strapped Chinese biotech firms to secure funding and a strategic move by global pharmaceutical giants to diversify their portfolios with innovative assets at competitive prices. This trend underscores the growing recognition of Chinese innovation on the global stage but also raises questions about valuation and negotiation power for future deals.
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