Surge in out-licensing deals drive China’s international pharma collaborations: GlobalData

China’s out-licensing deals have significantly increased over the last five years, showcasing the country as a source of innovative drugs. The licensing agreements provide global recognition as well as validation for China’s advancements in drug development. With China-origin innovations becoming must-watch opportunities for global pharma, collaborations with the US and EU are reaching record scale and value, says GlobalData.

GlobalData’s latest report, “China’s Licensing Trends Shaping Global Drug Development”, reveals that the drug licensing boom in China means that local biotech companies are becoming recognised for the advancements they are making in First in Class (FIC) innovation. Since 2020, several out-licensing deals from China to the US and EU have been conducted across various therapy areas, but deals remain focused on oncology, with a growing interest in immunology and metabolic disorders.

Gaffar Aga, Pharma Analyst, Strategic Intelligence at GlobalData, states, “China’s out-licensing has matured beyond oncology, and other therapeutic areas such as immunology and metabolic disorders have gained momentum over the last two years, signaling that China is now able to advance innovation across multiple therapy areas.”

In 2024, there was a surge in the number of China’s out-licensing deals as a result of the National Medical Products Administration (NMPA) pilot program to enhance clinical trials and expedite reviews for innovative therapies, streamlining approaches to accelerate approvals. Pharma companies have a significant incentive to partner with China, with further initiatives such as the NMPA 2025 Draft Measures.

China is known for its expertise around monoclonal antibodies (mAb), reflected by the volume and value of out-licensing deals associated with mAbs. In 2024, mAbs were observed as the most dominant modality out-licensed by China to the US and EU, followed by small molecules and antibody-drug conjugates.

George El-Helou, Pharma Analyst, Strategic Intelligence at GlobalData, adds, “This signifies the breadth of drug development across modalities in China. It reflects the progression beyond generics and biosimilars towards advancing in FIC and Best in Class (BIC) therapies. The continued flow of deals with US and EU global pharmaceutical companies continue to validate the strength and maturity of China’s innovation landscape.”

2025 has been a standout year so far for China’s out-licensing deals, with six of the 10 largest deals since 2020 occurring in the past nine months, including GSK, Merck, and Pfizer. Additionally, AstraZeneca led big pharma with the most out-licensing deals since 2020, with three of these deals also announced in 2025.

Aga and El-Helou concludes, “Out-licensing deals from China have gained traction among big pharma as they prepare for the upcoming patent cliff. To offset anticipated revenue loss, big pharma is aiming to acquire innovative therapies that can both diversify their portfolios and strengthen their long-term pipelines.”