{"id":6226,"date":"2025-02-17T13:34:07","date_gmt":"2025-02-17T18:34:07","guid":{"rendered":"https:\/\/guardianglobe.org\/?p=6226"},"modified":"2025-02-17T13:34:09","modified_gmt":"2025-02-17T18:34:09","slug":"chinas-growing-influence-in-the-u-s-biopharma-industry","status":"publish","type":"post","link":"https:\/\/guardianglobe.org\/?p=6226","title":{"rendered":"China&#8217;s Growing Influence in the U.S. Biopharma Industry"},"content":{"rendered":"\n<p>A little-known biotech company stunned the industry last spring when Summit Therapeutics announced its experimental cancer drug showed greater effectiveness than Merck\u2019s Keytruda. The drug was licensed from Chinese company Akeso Inc., highlighting a growing trend of U.S. companies sourcing breakthrough medicines from China.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Surge in Biopharma Deals with China<\/h2>\n\n\n\n<p>Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies in 2024, a significant rise from 20% the previous year and none five years ago, according to DealForma.<\/p>\n\n\n\n<p>\u201cThat\u2019s stunning to me,\u201d said Chen Yu, managing partner at TCGX. He noted that 20 years ago, China was seen as a minor player in the industry, but today the flow of innovation is reversing.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Factors Driving the Trend<\/h2>\n\n\n\n<p>Several reasons explain the shift towards China:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Chinese companies are producing higher-quality drug candidates.<\/li>\n\n\n\n<li>Clinical trials are faster and cheaper in China.<\/li>\n\n\n\n<li>Venture funding in China has declined, prompting biotech firms to seek deals.<\/li>\n\n\n\n<li>U.S. pharma firms have found a viable licensing model to acquire Chinese drugs.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Impact on U.S. Biotech Startups<\/h2>\n\n\n\n<p>Some industry experts worry that Big Pharma\u2019s preference for licensing from China could harm U.S. startups. Others argue that increased competition will drive innovation and efficiency.<\/p>\n\n\n\n<p>\u201cIt\u2019s a watershed moment,\u201d said Tim Opler of Stifel\u2019s global health-care group. \u201cPharma companies no longer necessarily need to buy U.S. biotechs when they can license promising assets from China.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Regulatory and Political Risks<\/h2>\n\n\n\n<p>U.S. regulators have historically been cautious about Chinese clinical trial data. Summit Therapeutics, for example, is running additional global Phase 3 trials for its cancer drug ivonescimab to meet FDA standards.<\/p>\n\n\n\n<p>There are also concerns that the U.S. government could intervene. Lawmakers have proposed measures like the Biosecure Act to restrict partnerships with Chinese biotech firms. Given the U.S.\u2019s protectionist stance on AI and semiconductors, similar policies could extend to biopharma.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Future of U.S.-China Biopharma Collaboration<\/h2>\n\n\n\n<p>While some see China\u2019s biopharma rise as an opportunity to lower drug costs, others fear it could weaken domestic innovation. The competition is undeniable, and as Opler put it, \u201cThe race in biopharma is on.\u201d<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A little-known biotech company stunned the industry last spring when Summit Therapeutics announced its experimental cancer drug showed greater effectiveness than Merck\u2019s Keytruda. The drug was licensed from Chinese company Akeso Inc., highlighting a growing trend of U.S. companies sourcing breakthrough medicines from China. Surge in Biopharma Deals with China Almost 30% of Big Pharma<\/p>\n","protected":false},"author":5,"featured_media":6227,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[3518,3512,3513,699,729,3519,3516,3517,3515,3514],"class_list":{"0":"post-6226","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-biotech-investments","9":"tag-china-biopharma","10":"tag-clinical-trials","11":"tag-drug-development","12":"tag-fda-approval","13":"tag-merck-keytruda","14":"tag-pharmaceutical-licensing","15":"tag-protectionist-policies","16":"tag-summit-therapeutics","17":"tag-u-s-biotech"},"_links":{"self":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6226"}],"collection":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6226"}],"version-history":[{"count":1,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6226\/revisions"}],"predecessor-version":[{"id":6228,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6226\/revisions\/6228"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/media\/6227"}],"wp:attachment":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6226"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}