Mainland China’s share of global out-licensing transactions has grown six-fold in five years, as major pharmaceutical companies systematically mine Chinese biotech pipelines for assets trading at 40–50% lower deal values than Western equivalents, according to Clarivate’s Biopharma Deal Making Report.
The Rise of China as a Pharma Innovation Source
China’s Share of Global Biopharma Out-Licensing Has Grown Six-Fold Since 2020
Mainland China’s out-licensing deals as a percentage of global biopharma transactions, 2020–2025
Chinese biotech assets trade at 60–70% lower upfront payments and 40–50% smaller total deal sizes than comparable Western assets — driving systematic pipeline sourcing from Mainland China by GSK, Bristol Myers Squibb, Eli Lilly, AstraZeneca and others.
5%
China’s share of global out-licensing deals in 2020
32%
China’s share of global out-licensing deals, H1 2025
40–50%
smaller total deal sizes for Chinese biotech assets vs. global peers
60–70%
lower upfront payments for Chinese biotech assets vs. global peers
New analysis from Clarivate, drawing on BioWorld transaction data, shows that out-licensing from Mainland China accounted for 32% of global biopharma transactions in the first half of 2025, up from 21% in 2024 and just 5% in 2020. The shift reflects growing pharma confidence in Chinese-generated clinical data, platform technologies, and the ability of Chinese biotechs to deliver first-in-class and best-in-class candidates at a significant cost advantage.
The Economics
The price differential is the central driver. Chinese biotech assets trade at 60–70% lower upfront payments compared with global peers, with total deal sizes running 40–50% smaller. Clarivate cites the example of Hansoh Pharmaceutical’s B7-H3 ADC, out-licensed to GSK for $185m upfront — 90% less than the $1bn+ Merck paid Daiichi Sankyo for a comparable phase 2 asset.
The Mega-Deals
The trend is visible at the top of the league tables. The largest biopharma deal announced so far in 2026 is Bristol Myers Squibb’s $15.2bn agreement with Jiangsu-based Hengrui Pharma, covering 13 early-stage programs across oncology, hematology and immunology. Eli Lilly’s $8.9bn partnership with Shanghai-based Innovent Biologics — announced in February 2026 — follows a similar structure: Innovent leads development through phase 2 in China, while Lilly controls global rights outside greater China. AstraZeneca, Pfizer and AbbVie have all struck comparable deals in the past 12 months, predominantly in oncology and immunology.
Manufacturing Implications
The shift in where drug pipelines are being sourced has implications for where future manufacturing demand will originate — and which modalities will dominate. The assets moving through these partnerships are concentrated in ADCs, bispecific antibodies, PD-1/VEGF combinations and siRNA therapeutics, all of which are technically demanding to manufacture. For Western biotechs competing for the same partnering conversations, the picture is more challenging: Chinese assets are arriving at similar or better clinical stages with substantially lower price tags attached.
Source: Clarivate, Biopharma Deal Making in 2025 and 2026, data current as of May 12, 2026
