US firm ArriVent’s plunge shows risks facing China’s biotech expansion into global markets
US firm ArriVent BioPharma’s shares plummeted after a late-stage trial failure involving a cancer drug licensed from China, a setback that analysts said highlighted the challenges facing Chinese biotech companies expanding overseas. New York-listed ArriVent closed down nearly 47 per cent on Tuesday after reporting that its cancer treatment firmonertinib failed to meet its main goal in a phase 3…
US biotech firm ArriVent BioPharma saw its shares plummet by nearly 47 percent after a late-stage trial failure involving a cancer drug licensed from China, underscoring the challenges faced by Chinese biotech companies expanding internationally. The New York-listed company reported that its cancer treatment, firmonertinib, failed to meet its primary goal in a phase 3 trial, which was initially developed to treat non-small cell lung cancer (NSCLC) by Shanghai Allist Pharmaceuticals.
ArriVent acquired exclusive rights to the drug in 2021 for global commercialization. The phase 3 trial revealed that firmonertinib did not significantly delay disease progression compared to standard chemotherapy treatment. ArriVent chairman and CEO Bing Yao expressed disappointment, stating that the results were not what the company hoped for, and that they were evaluating the trial data to determine the next steps for the drug.
Analyst David Zhang from Trivium China noted that the failure highlighted a critical issue for Chinese drug makers: commercial success in China does not guarantee clinical success in new markets or indications. Shanghai-based Allist's drug generated approximately 3.14 billion yuan (US$468 million) in sales in the first half of 2026 alone.
The company reported that firmonertinib contributed to a nearly 40 percent increase in first-half revenue compared to the previous year. Allist's stock did not trade on Wednesday due to the National Day holiday in mainland China, which ran from October 1 to 7. Chinese biotech firms have been rapidly expanding overseas as global pharmaceutical companies increasingly seek innovative therapies from China.
Analyst Zhang emphasized that the rapid growth in cross-border partnerships has not eliminated the inherent risks associated with drug development, stating that this setback demonstrates the clinical uncertainty that remains even for established products. Zhang further predicted that as more Chinese drugs enter global trials, we should anticipate a mix of successes and visible failures.
Written by urgent.news from South China Morning Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
