{
  "id": 3195080,
  "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",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-25T05:00:08.000Z",
  "source": {
    "name": "SCMP Business",
    "slug": "scmp-business",
    "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": "In the first half of the year, record-setting cross-border deals helped some previously loss-making Chinese biotech companies become profitable. However, global drugmakers are now signaling they plan to reduce deal budgets. Analysts say that biotech firms' deals with overseas partners have become the main funding source for advancing drug discovery, clinical development, and regulatory approval. While Chinese biotech assets are cost-effective compared to global peers, analysts question whether this reliance on foreign licensing income will be sustainable in the long term. In 2023, China recorded a record US$110 billion in cross-border deals for innovative drugs, with 81 agreements – about 80% of last year's total. Despite this, multinational companies are displaying caution about business development spending in their half-year earnings calls. Chinese firms can generate data quickly and their assets are generally not expensive, according to Macquarie Capital's Tony Ren. Jefferies' Cui Cui expects full-year out-licensing activity to continue growing rapidly. The Hang Seng SCHK Innovative Drug Select Index has risen about 4.25% over the past month, outperforming Hong Kong's benchmark Hang Seng Index. However, challenges remain for Chinese biotech developers, with JPMorgan Chase's Yang Huang noting the intensifying anti-corruption campaign in China's medical sector as a potential headwind for first-half and second-quarter earnings.",
  "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": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "South China Morning Post",
        "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",
        "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."
}