China’s faster and cheaper trials attract big pharma, GlobalData says

Western drugmakers are pursuing multi-billion-dollar deals for Chinese innovation.

China has positioned itself as the world’s second-largest developer of innovative drugs, with faster and cheaper trials, according to GlobalData Healthcare’s recent intelligence briefing.

“Big pharma is turning to China for the newest drug innovations, and the results are starting to speak for themselves,” said Sarah Nightingale, Asia-Pacific Principal Consultant at GlobalData Healthcare and co-author of the intelligence briefing.

Nightingale added that Western pharmaceutical giants are entering massive waves of multi-billion-dollar licensing agreements.

China-originated out-licensing reached $115b in 2025, with almost half of all US in-licensing now coming from China.

The growing global validation of China-originated assets was also reflected in Akeso’s lung cancer data at ASCO, which marked a first for a China-originating asset on the stage.

Deals are moving from single-asset licensing to full development-platform acquisitions, with the firm citing Bristol Myers Squibb’s agreement with Jiangsu Hengrui Pharmaceuticals and AstraZeneca’s deal with CSPC, valued at up to $18.5b in 2026.

“The regulatory picture is tightening. The Biotech Investment National Security Act and heightened scrutiny of China-developed drugs intended for US commercialization are adding a further layer of complexity for deal teams, wherever they sit,” it said.

Peter Barschdorff, Vice President at GlobalData Consulting and co-author of the intelligence briefing, added that “China is not a side conversation in global biopharma strategy anymore.”