In-Depth: Behind the Overseas Surge of China’s Innovative Drugs (AI Translation)
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文｜财新周刊 陈曦
By Caixin Weekly's Chen Xi
12.5亿美元首付款，最高48亿美元里程碑付款，总部设在沈阳的三生制药（01530.HK）与跨国药企辉瑞（NYSE：PFE）就抗肿瘤药物SSGJ-707达成交易，创下中国创新药对外授权交易首付款金额新高。
An upfront payment of $1.25 billion and milestone payments of up to $4.8 billion: Shenyang-based 3SBio Inc. (01530.HK) has reached a deal with multinational pharmaceutical giant Pfizer Inc. (NYSE: PFE) for its anti-tumor drug SSGJ-707, setting a new record for the highest upfront payment ever recorded in out-licensing deals for innovative drugs developed in China.
这是一款PD-1/VEGF双特异性抗体（下称“双抗”）药物。除上述交易款项外，辉瑞还认购三生制药价值1亿美元的普通股股份。
This is a PD-1/VEGF bispecific antibody drug (hereinafter referred to as “bispecific antibody”). In addition to the aforementioned transaction payment, Pfizer also subscribed to $100 million worth of common shares in 3SBio.
仅时隔两周，同领域又现天价交易，也与中国创新药企有关。6月2日，新冠疫情期间以mRNA疫苗一战成名的德国药企BioNTech（NASDAQ：BNTX）宣布，其PD-（L）1/VEGF双抗BNT327与百时美施贵宝（NYSE：BMY；下称“BMS”）达成合作，BMS将支付15亿美元预付款，至2028年累计20亿美元的无条件每年付款（non-contingent anniversary payments），以及最高达76亿美元的额外里程碑付款。双方将对半分摊成本、利润或亏损。BioNTech先是于2023年11月从中国创新药企普米斯手中引进该管线，后来在2024年11月宣布以8亿美元收购普米斯，以增强其肿瘤药管线。这距离普米斯最初在珠海成立仅过去了6年。而BioNTech在新冠疫苗不再能支撑业绩后，已经全面转向肿瘤药物研发。在同样火热的抗体偶联药物（ADC）赛道，它如今也与多家中国生物医药公司深入合作。
Just two weeks after a similar high-profile transaction in the sector, another billion-dollar deal has emerged—once again involving a Chinese innovative pharmaceutical company. On June 2, Germany’s BioNTech (NASDAQ: BNTX), which rose to prominence during the Covid-19 pandemic for its mRNA vaccines, announced a collaboration with Bristol Myers Squibb (NYSE: BMY, hereafter “BMS”) for its PD-(L)1/VEGF bispecific antibody candidate, BNT327. According to the agreement, BMS will pay $1.5 billion upfront, along with unconditional annual payments totaling $2 billion by 2028 (non-contingent anniversary payments), and as much as $7.6 billion in additional milestone payments. The two companies will evenly share costs, profits, or losses related to the project. BioNTech initially acquired development rights for this pipeline candidate in November 2023 from Chinese biotech firm Prime Medicine, later announcing an $800 million acquisition of Prime Medicine in November 2024 in order to bolster its oncology portfolio. This move comes just six years after Prime Medicine’s founding in Zhuhai. With Covid-19 vaccine sales no longer powering its financial results, BioNTech has undergone a comprehensive pivot toward cancer drug development. In the blockbuster antibody-drug conjugate (ADC) field, the company now maintains deep collaborations with multiple Chinese biopharmaceutical firms.
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- In 2024–2025, China’s innovative drug sector saw record-breaking out-licensing deals, with Pfizer paying $1.25B upfront for SSGJ-707 and BMS paying $1.5B upfront for BioNTech’s PD-(L)1/VEGF bispecific, highlighting global recognition.
- Major cross-border deals drove sector share price rallies and renewed investment, with China’s external drug licensing transaction value rising from $4.85B in 2020 to $52.26B in 2024 (CAGR >80%).
- Intense competition and “outbound” business development have become key strategies; challenges include pipeline oversupply, price debates, and structural adjustment as the sector aims for global leadership.
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- 3SBio
三生制药 - 3SBio, located in Shenyang, secured a significant deal with Pfizer for its anticancer drug SSGJ-707. This agreement marks a new high for upfront payments in Chinese innovative drug licensing, receiving $1.25 billion upfront and up to $4.8 billion in milestone payments. Pfizer also invested $100 million in 3SBio's shares. This transaction significantly boosted 3SBio's subsidiary, Sunshine Guojian, whose stock doubled.
- Pfizer
辉瑞 - Pfizer (NYSE: PFE) is a multinational pharmaceutical company that has entered into a significant deal with China's 3S Pharmaceutical (01530.HK) for the anti-tumor drug SSGJ-707. This transaction, involving an upfront payment of $1.25 billion and potential milestone payments up to $4.8 billion, marks a new high for upfront payments in Chinese innovative drug licensing deals.
- BioNTech
BioNTech - BioNTech, a German pharmaceutical company, partnered with Bristol Myers Squibb (BMS) for their PD-(L)1/VEGF bispecific antibody, BNT327. This collaboration, originating from BioNTech's acquisition of Chinese firm Promdo, involves a $1.5 billion upfront payment from BMS. BioNTech has transitioned towards oncology drug development following the COVID-19 vaccine's market shift.
- Bristol Myers Squibb
百时美施贵宝 - Bristol Myers Squibb (BMS), a multinational pharmaceutical company, recently partnered with BioNTech on the PD-(L)1/VEGF bispecific antibody BNT327. BMS will provide a $1.5 billion upfront payment, up to $2 billion in non-contingent anniversary payments by 2028, and up to $7.6 billion in additional milestone payments. This significant deal highlights the increasing value of Chinese innovative drugs in the global market.
- Prometheus Biosciences
普米斯 - Prometheus Biosciences (普米斯) is a Chinese innovative drug company that BioNTech initially licensed a PD-(L)1/VEGF bispecific antibody from in November 2023. BioNTech later acquired Prometheus Biosciences for $800 million in November 2024 to strengthen its oncology pipeline.
- Sunshine Guojian Pharmaceutical (Shanghai) Co., Ltd.
三生国健 - SanSheng Guojian Pharmaceutical (Shanghai) Co., Ltd. (known as Sunshine Guojian) is a subsidiary of SanSheng Pharmaceutical. Its stock symbol is 688336.SH. The company experienced a significant surge in its stock value, with its shares doubling within a week, following the announcement of a major drug deal between its parent company and Pfizer.
- Akeso Biopharma
康方生物 - Akeso Biopharma (Kangfang Bio) is a Chinese innovative drug company. Its product, AK112 (iadarfon), is a PD-1/VEGF bispecific antibody and the first globally approved drug with this target. Its success in a head-to-head trial against Merck's "King of Drugs" PD-1 antibody Keytruda ignited a buying spree from multinational pharmaceutical companies in this field.
- MSD
默沙东 - This article does not contain information about MSD. It focuses on several other pharmaceutical companies, including BioNTech, Pfizer, Bristol Myers Squibb, SanSheng Pharmaceutical, Kangfang Biology, BeiGene, Innovent Biologics, and Hengrui Medicine.
- Roche
罗氏 - Roche is mentioned in the context of bevacizumab (Avastin), a mature single-agent drug that has been used in clinical practice. This drug is referenced in a discussion about the originality of PD-(L)1/VEGF bispecific antibodies, which combine two targets that already have established single-agent treatments.
- BeiGene
百济神州 - BeiGene (Chinese: 百济神州), a biopharmaceutical company, achieved GAAP profitability of $1.27 million in Q1 2025, marking its first profit. The company expects to reach operating income break-even under GAAP and positive operating cash flow for the full year 2025. BeiGene is listed on the Shanghai Stock Exchange, Hong Kong Stock Exchange, and NASDAQ.
- Innovent Biologics
信达生物 - Innovent Biologics (01801.HK) is nearing a significant turning point, with a substantial reduction in annual losses in 2024 and adjusted non-IFRS profit turning positive for the first time. In Q1 2025, product revenue surged by 41% to over 2.4 billion yuan, exceeding market expectations. Its PD-1/IL-2α-bias bispecific antibody fusion protein, IBI363, showed promising clinical data in lung and colorectal cancer at the ASCO 2025 conference.
- Jiangsu Hengrui Pharmaceuticals
恒瑞医药 - The article mentions Jiangsu Hengrui Pharmaceuticals as a leading Chinese pharmaceutical company that has successfully pursued international partnerships. In August 2023, Hengrui licensed its TSLP antibody SHR-1905 to US company One Bio for $25 million upfront and up to $1 billion in milestones. Hengrui has also made other deals, including a significant GLP-1 product partnership in May 2024.
- GlaxoSmithKline
葛兰素史克 - GlaxoSmithKline (GSK) recently acquired One Bio, a US pharmaceutical company, for an upfront payment of $1 billion and an additional $400 million in milestone payments. This acquisition highlights GSK's interest in promising drug candidates, especially those with advanced clinical data. This particular deal involved One Bio's TSLP antibody SHR-1905, which was initially licensed from the Chinese firm Hengrui Medicine.
- Remegen
映恩生物 - Remegen is mentioned in the context of Verdiva/Xianda, Arrivent/Lepu Bio, and Avenzo/Remegen transactions, implying its involvement in deals for preclinical projects. This indicates a strategy of exploring early-stage transactions to generate funding.
- Pharma Big Biomedical
派格生物医药 - Pharma Big Biomedical (02565.HK), despite developing drugs for the popular GLP-1 sector, saw its stock price drop significantly on its market debut in May. It experienced a 26% decline on its first day and continued to fall, dropping 42.18% from its issuance price by mid-June. This performance contrasts sharply with other newly listed biotech companies.
- December 2022：
- Akeso entered into a licensing deal with Summit Therapeutics, receiving $500 million upfront and potential total value up to $5 billion for Ivonescimab.
- August 2023：
- Hengrui Medicine licensed overseas rights for SHR-1905 to U.S.-based One Bio for $25 million upfront and total deal value of about $1 billion.
- November 2023：
- BioNTech acquired development rights for a PD-(L)1/VEGF bispecific antibody candidate from Chinese biotech firm Prime Medicine.
- Early 2024：
- One Bio was acquired by GlaxoSmithKline for a $1 billion upfront payment and $400 million milestone payment.
- May 2024：
- Hengrui Medicine completed another major deal involving a portfolio of GLP-1 products via a NewCo structure.
- 2024：
- Positive clinical trial data for Chinese innovative drugs, including Cadonilimab outperforming Keytruda, presented at various international conferences.
- 2024：
- BeiGene achieved positive annual adjusted operating profit for the first time.
- 2024：
- Innovent Biologics narrowed its annual loss and turned adjusted non-IFRS profit positive for the first time.
- 2024：
- Total upfront payments for licensing deals in the Chinese innovative drug sector surpassed total equity financing for the first time: $4.099 billion in upfront licensing payments vs. RMB 28.1 billion total financing.
- November 2024：
- BioNTech announced an $800 million acquisition of Prime Medicine to bolster its oncology portfolio.
- Q1 2025：
- BeiGene posted GAAP net profit of $1.27 million for the first quarter.
- Q1 2025：
- Innovent Biologics’ product revenue exceeded RMB 2.4 billion, a 41% year-on-year increase.
- April 15, 2025：
- InnoCare Pharma Limited (09606.HK) went public in Hong Kong, closing its first trading day up nearly 117%.
- May 23, 2025：
- Jiangsu Hengrui Medicine Co. Ltd. was listed on the Hong Kong Stock Exchange, raising a five-year record sum for pharmaceutical IPOs in Hong Kong.
- May 27, 2025：
- PegBio Pharma (02565.HK) debuted on the Hong Kong stock market, closing down 26% on its first trading day.
- June 2, 2025：
- BioNTech and Bristol Myers Squibb announced a collaboration for the PD-(L)1/VEGF bispecific antibody candidate BNT327, with BMS to pay $1.5 billion upfront, $2 billion in unconditional annual payments by 2028, and up to $7.6 billion in milestone payments.
- June 4, 2025：
- Innovent Biologics’ share price jumped over 14% following positive clinical data presentation at the 2025 ASCO meeting.
- June 9, 2025：
- Pfizer CEO Albert Bourla discussed the SSGJ-707 deal at the Goldman Sachs Global Healthcare Conference.
- June 11, 2025：
- Bristol Myers Squibb discussed its partnership with BioNTech at the Goldman Sachs Global Healthcare Summit.
- As of June 13, 2025：
- CSI Innovative Pharmaceutical Industry Index rose 17.34% for the year; Hang Seng Biotech Index up 61.96% since the beginning of the year.
- As of June 13, 2025：
- PegBio had declined 42.18% from IPO price; Hengrui Medicine’s H-shares and ImmuneOnco's shares had risen by 31% and 189%, respectively, from IPO prices.
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