By HongKong DengYue Medicine

The global pharmaceutical landscape is undergoing a profound transformation, and Chinese innovative drugs are at the forefront of this shift. In 2025, China's out-licensing (License-out) deals for innovative drugs reached a staggering total value of approximately $1,356.55 billion (around 9,483 billion RMB), with 157 transactions and upfront payments totaling $70 billion. This marked a historic high—more than 2.5 times the 2024 figure—and positioned China as accounting for 49% of global out-licensing value, surpassing the United States for the first time. As we step into 2026, this momentum signals not just economic growth but a meaningful contribution to global health, bringing cutting-edge therapies to patients worldwide.

The Surge in Out-Licensing: From Local Innovation to Global Impact

The 2025 boom featured landmark deals that highlighted China's rising prowess in frontier areas like antibody-drug conjugates (ADCs), bispecific antibodies, and multi-target therapies. Key examples include:

  • Qilu Pharmaceutical (Keide Medicine) securing a deal exceeding $130 billion with Biohaven and AimedBio, granting global rights to its first-in-class FGFR3-targeted ADC (GQ1011) and a platform for developing new ADCs across 18–21 targets. This reflects the growing emphasis on platform technologies rather than single assets.
  • Hengrui Medicine partnering with GSK in a potential $125 billion agreement, covering PDE3/4 inhibitors and up to 11 projects in oncology, respiratory, and autoimmune diseases, with $500 million upfront.
  • Innovent Biologics (Xinda Biology) collaborating with Takeda in a $114 billion strategic partnership (including $1.2 billion upfront and up to $10.2 billion in milestones), advancing three core oncology pipelines through a co-development and co-commercialization (Co-Co) model.

These transactions demonstrate a shift from simple licensing to deeper, risk-sharing collaborations. Chinese firms are no longer just suppliers of assets; they are equal partners in global R&D and commercialization. With patent cliffs looming—over 25 major drugs expected to lose exclusivity by 2037, risking more than $230 billion in revenue—international pharma giants are increasingly turning to China's high-quality, cost-effective pipelines to refill their portfolios.

Industry experts predict 2026 will sustain this high-level activity, potentially even accelerating, as more clinical data emerges and "data-driven" deals replace volume-focused ones. Around 20 blockbuster innovative drugs are anticipated to gain approval in China this year, many poised for international entry via multi-center trials and global authorizations.

Sustainability and Responsibility: The Foundation of True Value

Amid this rapid globalization, the industry must prioritize quality, compliance, and ethical standards. At Hong Kong DengYue Medicine, we believe genuine value lies in the relentless pursuit of excellence and innovation, while embracing sustainability and social responsibility. Built on a foundation of quality, regulatory compliance, and integrity, we actively engage in the global market—not only by facilitating the journey of Chinese-origin drugs to international patients but also by contributing to worldwide health accessibility. Through partnerships and responsible practices, we support environmentally friendly R&D processes and ensure therapies reach those in need, fostering a greener and more equitable pharmaceutical ecosystem.

This approach aligns with broader trends: as Chinese innovations address unmet needs in oncology, rare diseases, autoimmune conditions, and metabolic disorders, they enhance global treatment options while promoting long-term industry health.

Looking Ahead: A Shared Mission for Global Well-Being

2026 promises continued expansion for China's innovative drugs on the world stage, with more diversified modalities, stronger clinical evidence, and expanded market access. This is more than commercial success—it's about extending hope to patients everywhere, regardless of geography.

At Hong Kong DengYue Medicine, we view this evolution as a collective mission. By upholding innovation and responsibility, we remain committed to bridging high-quality Chinese therapies with global needs, helping build a healthier, more sustainable world for all. The future of medicine is collaborative, and China's contributions are lighting the way forward.