{
  "id": 3190781,
  "title": "As global drug giants grow cautious, can Chinese biotech keep cashing in on out-licensing?",
  "url": "https://urgent.news/2026/08/25/as-global-drug-giants-grow-cautious-can-chinese-biotech-keep-cashing",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-25T05:00:08.000Z",
  "source": {
    "name": "South China Morning Post",
    "slug": "south-china-morning-post",
    "url": "https://www.scmp.com/business/china-business/article/3365125/global-drug-giants-grow-cautious-can-chinese-biotech-keep-cashing-out-licensing"
  },
  "original_language": "en",
  "account": "Chinese biotech firms have experienced a surge in profitability, largely due to record-breaking cross-border deals in the first half of the year. These deals have surpassed initial public offerings and pre-IPO fundraising as the primary funding source for these companies. Analysts predict that the reliance on overseas licensing income may be sustainable, given the cost-effectiveness of Chinese biotech assets compared to global peers. In the first half of 2021, China saw a record US$110 billion in cross-border deals, with 81 agreements reached, accounting for about 80% of the total for all of the previous year. Hong Kong and mainland China-listed biotech companies raised significant funds through IPOs and primary market financing rounds, with some firms turning a profit through out-licensing agreements. However, multinational drugmakers are tightening their budgets for deal-making, with companies such as AstraZeneca and Pfizer signaling caution about their business development spending. Despite this, experts remain optimistic about the continued growth of cross-border licensing activity between Chinese biotech firms and their global partners.",
  "summary": "Record-breaking cross-border deals helped make some formerly loss-making Chinese biotech companies profitable in the first half of the year, but multinational drugmakers are now signalling plans to tighten deal budgets. Analysts said deals with global partners had overtaken initial public offerings and pre-IPO fundraising as the main funding option for cash-starved Chinese biotech firms wanting…",
  "key_points": [
    "Chinese biotech firms saw record US$110 billion in cross-border deals in H1 2021.",
    "81 agreements reached, accounting for 80% of total deals last year.",
    "Multinational drugmakers tighten budgets, raising concerns for out-licensing income."
  ],
  "editors_take": "Chinese biotech firms' reliance on out-licensing income appears sustainable due to the cost-effectiveness of their assets compared to global peers, despite growing caution among multinational drugmakers.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "SCMP Business",
        "title": "As global drug giants grow cautious, can Chinese biotech keep cashing in on out-licensing?",
        "url": "https://urgent.news/2026/08/25/as-global-drug-giants-grow-cautious-can-chinese-biotech-keep-cashing-3195080",
        "published": "2026-08-25T05:00:08.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}