China’s biopharmaceutical sector experienced a notable increase in oncology drug licensing deals in 2024, particularly for monoclonal antibodies (mAbs) and antibody-drug conjugates (ADCs), with a combined deal value of $30 billion. The mAbs and ADCs licensed from Chinese biopharma accounted for 89 per cent of all molecule types, with the total deal value being three times that of similar deals licensed out from the US, according to GlobalData.
This underscores the growing innovative capabilities of Chinese drugmakers, spurred by government policies that prioritise innovation. Significant reforms in clinical development processes and regulatory reviews in China have led to faster drug approvals, positioning the country as a vital source of novel therapies and a partner in innovative drug development.
The ongoing US-China trade developments pose significant implications for the global economy. An agreement announced on 12 May 2025, which reduced US President Trump’s tariffs on Chinese goods from 145 per cent to 30 per cent and China’s retaliatory tariffs on US imports from 125 per cent to 10 per cent for an initial 90-day period, has alleviated immediate tensions. However, persistent uncertainties and high tariffs may hinder economic growth and cross-border licensing, prompting Chinese companies to explore more stable opportunities outside the US.
In 2024, ADCs dominated oncology licensing activity in China, constituting 56 per cent of the total deal value at $19 billion, followed by mAbs at 33 per cent ($11 billion) and small molecules at 9 per cent ($4 billion), according to GlobalData’s Pharmaceutical Intelligence Center Deals Database.
Ophelia Chan, Senior Business Fundamentals Analyst, GlobalData, comments, “Notably, over half (52 per cent) of these ADC deals involved bispecific ADCs, indicating a shift towards more complex biologics and a growing interest in China’s next-generation innovative assets.”
From 2023 to 2024, the licensing value of oncology drugs from Chinese biopharma increased 24 per cent to $33 billion, while the value from US biopharma fell 24 per cent to $35 billion, signalling China’s emphasis on innovation and global confidence in its biopharmaceutical assets. In 2024, 27 deals worth $28 billion were made with non-Chinese companies, 68 per cent ($18.7 billion) of which were licensed to US companies, marking a 269 per cent increase in deal value from 2023, reflecting growing US interest in Chinese oncology innovations.
Chan concludes, “Despite the growing appeal of Chinese innovation, US-China trade tensions create uncertainty in the licensing landscape. Temporary tariff reductions provide short-term relief, however, shifting policies and potential new restrictions may disrupt the existing agreements and deter future partnerships.”