US Drugmakers Flock to China for Licensing Deals on Experimental Medicines
US drugmakers are increasingly turning to China for licensing deals on experimental medicines. Merck is the latest company to make such a deal, agreeing to pay Chinese biotech SciBrunch Therapeutics $400 million upfront for global rights to an experimental cancer drug.
This move is part of a growing trend where Chinese biotechs license their drugs overseas in exchange for upfront payments and royalties. Some major deals include:
In May, Pfizer licensed Innovent Biologic's early-stage oncology programs for up to $10.5 billion. In October, Merck paid $400 million upfront for global rights to SciBrunch Therapeutics' experimental cancer drug SPR2015.
Other notable deals include Bristol Myers Squibb's licensing of Jiangsu Hengrui Pharmaceutical's early-stage oncology programs for up to $15.2 billion and Eli Lilly's licensing of Innovent Biologic's biologic drugs for up to $8.85 billion.