Global drugmakers are seeking China-developed experimental medicines to cut costs before patent expirations. Deals in the greater China region surged to $137.7 billion in 2025. Mainland China is a key focus, with Novartis and GSK signing major agreements. Analysts predict a 40%-50% growth this year, particularly in oncological treatments.

Deal sizes are soaring, with an average of $1.3 billion this year, up 76% from 2025. AstraZeneca’s $18.5 billion weight-loss drug deal and AbbVie’s $5.6 billion tumor treatment deal are key drivers. Total deal value includes upfront fees, milestone payments, and royalties. 38 out-licensing deals already announced in 2026.

Multinational firms are tapping into China’s strength in molecule research, especially in chemistry. China leads in ADC licensing activity, accounting for 90% of the global market. Companies like Hansoh Pharmaceutical Group project solid earnings growth from out-licensed programs. China’s assets are valued for their quality, driving higher upfront fees.

The average upfront fee for securing drug development rights has doubled to $77.7 million this year. Chinese firms are demanding higher valuations due to the improved recognition of their assets. Despite the surge in fees, demand for China’s assets remains strong in the pharmaceutical industry.

Read more at Yahoo Finance: Analysis-China biotech licensing boom to hit record in 2026 as pipeline swells