- China accounted for 33% of industry licensing spending in 2025, with over 60 deals between Chinese drugmakers and Western companies
- Major investors including MPM BioImpact and Andera Partners are expanding networks in China, screening thousands of assets and licensing Chinese-developed drugs to Western markets
The 2026 J.P. Morgan Healthcare Conference revealed a shift in global pharmaceutical power dynamics, with China’s biotech sector commanding ever increasing attention from Western investors and executives who acknowledged the region’s transformation from manufacturing hub to innovation leader.
You Cannot Ignore China
China accounted for approximately one-third of industry licensing spending, with over 60 deals between Chinese drugmakers and Western companies completed in 2025, according to industry data presented at the conference. This marks a significant increase from previous years, with roughly one quarter of all licensed assets now originating from China.
“Everyone recognizes you cannot ignore China,” captured the mood at JPM266, highlighting the consensus view that China represents a structural force rather than a cyclical trend in biopharma development.
The concurrent China FIC Innovation & Collaboration Summit in San Francisco showcased Chinese pharmaceutical companies’ capabilities in artificial intelligence, cell therapy, and drug R&D, drawing substantial global participation despite ongoing geopolitical complexities.
Investment Strategies Adapt to Asian Expansion
Major Western investors are actively repositioning to capitalize on Chinese innovation. MPM BioImpact opened a Singapore office in 2024 specifically to access Asia-Pacific opportunities, with the firm’s team now screening thousands of Chinese-developed assets.
“We’ll see much more back and forth going into China,” said Jan Van den Bossche, partner at European venture firm Andera Partners. “We’ve already intensified that, to go more to Chinese-oriented conferences. It’s definitely something you need to do. We are extending our networks in China.”
Andera Partners has begun licensing China-developed assets to US and European drug developers, exemplifying the bidirectional flow of innovation that characterized JPM26 discussions.
Industry executives highlighted China’s advantages in both regulatory speed and cost efficiency for clinical development, with increasing confidence in data generated from China-only studies expected to accelerate this trend.
Technology Leadership Emerges in Key Areas
Conference discussions centered on China’s growing leadership in specific therapeutic modalities and technologies, including:
- Cell and gene therapy platforms
- AI and machine learning applications in drug discovery
- Novel data modalities for clinical research
- Diagnostics and digital health solutions
Asian sovereign wealth funds, regional banks, and private capital pools are increasingly backing healthcare platforms aligned with regional priorities, creating more multipolar capital flows in global biopharma. This financial infrastructure supports Chinese companies’ expansion into strategic partnerships across Asia, Africa, and the Middle East.
Industry observers noted that data governance, intellectual property protection, and national alignment face heightened scrutiny through both political and commercial lenses as geopolitical tensions persist.
The consensus view emerging from JPM26 positioned China’s biotech development as an undeniable force shaping global healthcare investment and strategy, with Western companies actively building networks and strategies to engage with Chinese innovation while navigating complex geopolitical realities.
