2025: A Breakout Year for China’s Innovative Drug Industry

Looking back at 2025, China’s biopharmaceutical sector delivered one of its strongest performances to date despite a volatile global economy and rapid technological shifts. This was not merely a year of recovery; it marked a structural breakthrough for the industry. From regulatory acceleration to capital market revival and growing global business development momentum, China’s innovative drug ecosystem entered a phase of tangible value realization.

Innovation Breakthroughs in 2025

According to data released by China’s National Medical Products Administration (NMPA), 76 innovative drugs were approved for market launch in 2025, up from 48 in 2024, setting a new record. Among these, 23 were biologics and 21 were domestically developed innovative drugs, meaning domestic innovation accounted for over 91% of total approvals.

This surge reflects strengthened R&D capabilities, improved clinical execution, and a fundamental upgrade in the regulatory environment. China now hosts over 60% of global clinical trials for key drug targets, demonstrating both scale and operational efficiency.

Policy support played a pivotal role in this progress. Investigational New Drug (IND) review processes were streamlined, clinical trial approvals were accelerated to 30 working days, and initiatives were launched to support global synchronized development, pediatric drugs, and therapies for rare diseases.

Capital access improved significantly in 2025. The STAR Market reopened its fifth listing standard, shifting evaluation criteria from revenue and profit to market value and R&D strength. Hong Kong’s Chapter 18A framework continued to evolve, providing a more favorable environment for pre-revenue biotech companies. Additionally, China introduced its first Commercial Health Insurance Innovative Drug Catalogue, which included five CAR-T therapies, marking a milestone in establishing a multi-layered payment system.

Together, financing, regulation, and reimbursement created a three-pillar institutional engine, laying the foundation for sustainable innovation and commercialization.

Business Development Emerges as a Core Growth Engine

China’s biotech industry is moving decisively beyond its generics-driven past. The defining features of this new era are original innovation combined with global expansion.

International institutions have taken notice. Goldman Sachs highlighted out-licensing as a core growth strategy for Chinese biotech, while Mizuho Securities noted that Chinese assets offer compelling value at comparable quality levels.

According to BCG’s New Drug Modalities 2025 report, over 40% of total deal spending by the world’s top 20 biopharma companies involved China-originated assets, the highest level since tracking began. Total outbound licensing value exceeded USD 130 billion, with more than 150 deals completed. Milestone payments are increasingly being triggered, indicating a shift from one-off upfront deals toward long-term value realization. Business development models are diversifying, from NewCo structures to co-development with multinational pharma.

China’s innovative drugs are no longer simply licensed overseas; they are being developed, validated, and commercialized globally.

Hong Kong IPO Market Reaches Historic Highs

The Hong Kong IPO market rebounded strongly in 2025. Supported by Chapter 18A reforms, more than 20 biotech companies listed across A-share and Hong Kong markets, raising nearly HKD 30 billion in total. Several leading companies transitioned from R&D-focused operations to commercialization-driven strategies.

Active capital markets eased funding pressures and reinforced a virtuous cycle linking financing, R&D, business development, listing, and global expansion. This cycle supports both domestic growth and international competitiveness for Chinese biotech companies.

Looking Ahead: 2026 and Beyond

The momentum carried into 2026. Innovative drug indices surged, and the Innovative Drug ETF (159570) rose nearly 7% at the start of the year. Landmark deals quickly followed. Insilico Medicine, Hong Kong’s top biotech IPO fundraiser in 2025, announced an USD 888 million AI-driven R&D collaboration with Servier. Its Pharma.AI platform will focus on high-difficulty oncology targets, marking one of the first major business development deals of 2026.

Key focus areas for the coming year include immuno-oncology and next-generation IO therapies, antibody-drug conjugates, metabolic and weight-loss therapies, small nucleic acids, and gene and cell therapies. Accelerating approvals, improved reimbursement mechanisms, and maturing pipelines are expected to drive faster growth and concentration around high-quality assets.

Globally, business development is becoming routine rather than exceptional. Chinese biotech companies are playing an increasingly influential role in overseas clinical development, licensing execution, and product launches. Across the value chain, innovation is also driving growth in CRO, CMO, CDMO services, and upstream reagents and raw materials. The convergence of AI and biopharma is further shortening R&D cycles and reshaping productivity in drug discovery and development.

Where Global Collaboration Happens Next

BIOCHINA2026 brings together this momentum. More than 600 investors, biotech founders, and pharma C-level and business development executives have already joined the BiOPartnering platform. The platform opens on January 16, offering participants the opportunity to start scheduling 1V1 meetings and explore collaborations that advance innovative drug development on a global scale.

Learn more and register for BiOPartnering here: https://u.morebio.cn/mABz6jLG

More information about BIOCHINA2026: https://www.biocn.cn/en/en.html