In the first half of 2025, the hottest buzzword in China's pharmaceutical sector has been "international expansion". At a recent public forum, Ma Jianchun, President of China Society for WTO Studies, announced that the number of original, innovative drugs under development in China has surged to first place globally—marking a rapid transformation from being a major drug producer to a powerhouse in pharmaceutical innovation.

With both quantity and quality on the rise, this wave of expansion isn't just hype. From 2019 onward, every key metric tied to licensing-out Chinese drug assets—transaction counts, upfront fees, and total deal value—has climbed steadily.

But as China's innovative pipeline sails deeper into international markets, what will be the next destination?

Shao Ke, Deputy General Manager at Sinovac Biotech, says Chinese biotech exporters are now navigating into the "large rivers and seas"—seeking competitive advantages in high-demand therapeutic categories. The focal areas, he believes, are oncology, autoimmune disorders, and metabolic diseases that include diabetes and weight management.

Building on this dynamic backdrop, Chinese biotech is poised for another record-breaking year in business development. A recent deal struck by a leading company partnered with Pfizer to license its dualtarget antibody therapy produced by a Chinese research group shattered previous records on upfront fees. And the momentum didn’t stop there: investors tracking the sector report that this year’s total deal values are already on track to exceed last year’s record, as are initial payment tranches.

Photo/VCG

According to data from PharmCube, in 2024, Chinese innovative drug business development (BD) deals reached record highs, with total transaction value hitting $52.3 billion and upfront payments totaling $4.1 billion. As of May 27, the cumulative deal value had already climbed to $45.5 billion, with $2.2 billion in upfront payments, putting the full-year total on track to set a new record.

Speaking at the annual National Pharmaceutical Industry Forum, Ma reaffirmed an earlier announcement: China now leads globally in the volume of innovative drugs in active development, accounting for roughly one quarter of all such drugs under evaluation worldwide. China’s rapid transformation from "a nation of drugmakers" to "a nation of drug innovators" is well underway.

Zhao Renbin, Vice President of Clinical Development and Medical Affairs at InnoCare, adds that China's rise is reflected across dimensions: more projects in the pipeline, higher-quality programs, and growing international recognition.

He explains that regulatory reforms introduced a decade ago ushered in a new era for innovation. What once took 10 years for a home-grown drugs to launch after first approval globally has now often been shortened to just a year or two, with some new therapies launching at the same time as overseas. Since China joined the International Council for Harmonisation, joint global clinical trials increasingly include Chinese sites. In fields like bispecific antibodies and antibody-drug conjugates, China can now compete at a truly global level.

Looking back at the workload from 2011 through 2024, more than 300 categoryone new drugs were approved in China. Meanwhile, domestic innovators have grown from a tiny share of the market to commanding eighty percent of approvals. In 2024 alone, at least 17 innovative drugs developed in China earned FDA breakthrough therapy designations—clear evidence that quality and innovation are receiving international endorsement.

Against this backdrop, exporting innovation is no longer just a buzz phrase—it is a strategic imperative.

Zhao noted that every year from 2019 to 2024 saw steady increases in licensing-out activity. And in the first quarter of this year alone, 33 new deals were struck in crossborder business development—and that figure is expected to keep climbing.

Yet "going global" brings new challenges. Ma highlights several persistent barriers—ranging from varying regulatory standards and IP protection concerns, to the need for overseas operating capabilities.   

Ma recommends creating a "global pharmaceutical community", starting with policy-driven, institutionalized openness and cooperation. Mutual regulatory recognition and trade agreements would create a smoother pathway for drugs crossing borders. Cross-border platforms offering end-to-end support services could dramatically cut costs and speed up market access.

He also calls for financial innovation—aligning patient capital with biotech needs to fuel sustained growth.

Another key strategy is harnessing artificial intelligence to revolutionize the R&D process.  

Ma also encourages collaboration across Chinese companies to evolve from simple licensing models to a shared-development approach—embedding innovation deep into global R&D ecosystems and becoming a central driver of modern drug discovery.

Shao concludes that Chinese biopharmaceutical companies must stake their claims in global high-regulation markets—such as the U.S. and Europe—while also engaging emerging markets, which offer huge populations, rapid growth, and underserved needs. These fast-rising regions may present the greatest opportunity, especially where established multinational firms have less dominance.

Beijing Jundu (Shanghai) Law Offices' deputy director and senior partner Yue Yun adds a timely reminder: this is a narrow window for financing in the pharmaceutical industry—perhaps only a few years. Based on experience, Shao’s advice is to secure funding now.