China Biopharma’s $56.7b deal boom signals pillar industry dominance

Out-licensing jumped 132% as sector becomes second-largest global hub.

China’s biopharmaceutical sector has been designated an “emerging pillar industry,” according to the government work report following the National People’s Congress, signalling increased policy support and resource allocation.

The sector accounts for over 30% of China’s innovative pipelines, making it the second-largest hub for global biopharmaceutical development. Key segments include innovative drugs, high-end medical devices, CRDMO, and digital healthcare.

Data from PharmaCube shows Chinese innovative drug out-licensing deals increased 132% from the start of 2026, totaling $56.7b across 44 transactions, compared with $24.4b in the same period last year.

In addition to this, antibody-drug conjugate (ADC) products account for 51 of global ADC trials originating in China.

The report also found that clinical failure rates for ADC drugs range from 70% to 90%, with over 100 projects discontinued or removed from pipelines.

Internet healthcare companies, including JD Health and 160 Health, have adopted AI technologies to support service delivery.

China also approved the world’s first brain-computer interface (BCI) product for quadriplegia rehabilitation.

UOB Kay Hian analysts rate leading biopharma and internet healthcare companies as “overweight,” meaning they expect these firms to perform better than the broader healthcare market.