US Drugmakers Flock to China for Licensing Deals
US drugmakers are increasingly turning to China for licensing deals, offering significant upfront payments and royalties in exchange for global rights to experimental medicines. The trend is driven by China's thriving biotech sector, which has produced a number of promising drugs that require additional funding to bring them to market.
The latest example is Merck's agreement with SciBrunch Therapeutics, under which the US company will pay $400 million upfront for global rights to an experimental cancer drug. This deal follows similar licensing agreements between major US pharmaceutical companies and Chinese biotechs in recent years.
According to a list of deals compiled by Reuters, some notable examples include Pfizer's agreement with Innovent Biologic to license 12 assets for up to $650 million upfront and Bristol Myers Squibb's deal with Jiangsu Hengrui Pharmaceutical to license 13 assets for up to $600 million upfront.
The trend has raised concerns about the potential risks associated with partnering with Chinese companies, particularly in light of the country's strict intellectual property laws. However, many US pharmaceutical companies see the deals as a strategic way to tap into China's growing biotech sector and access new markets for their products.