Pharma Companies Hooked on Chinese Licensing Deals for New Treatments

Big Pharma companies are increasingly turning to Chinese licensing deals for new treatments and medicines. According to Bloomberg Intelligence, at least 32 such deals have been struck this year through July, putting 2026 on track to surpass last year's record of 45. This trend is driven by the potential for innovative solutions from China's biotech sector.

One notable example is Merck & Co.'s partnership with Sichuan Kelun-Biotech Biopharmaceutical Co., which licensed a promising cancer treatment to the American drugmaker. The treatment, still in late-stage trials, has shown potential against various tumors and could become a cornerstone therapy for cancer.

Diederik Stadig, a senior healthcare economist at ING, notes that China is becoming an alternative hub for pharmaceutical innovation, rivaling established hubs like the Bay Area or Cambridge. Pharma companies would be wise to take note of this shift.