July marked a turning point for China’s biotech sector. Cross‑border licensing activity surged, with 12 deals worth $9.3 billion. AstraZeneca led the charge, signing three collaborations with Chia Tai Tianqing, CSPC Pharmaceutical Group and Dizal Pharma that together exceed $5.3 billion, underscoring global pharma’s appetite for Chinese breakthroughs. Chinese firms are also innovating on the business side. CSPC secured a partnership that blends its AI‑driven siRNA platform with drug design, while Hansoh Pharma used a “NewCo” model to license an oral IL‑23 antagonist, earning a $120 million upfront payment and up to $2.18 billion in milestones. Regulatory momentum stayed strong: eight new drugs received approval in July, covering psoriasis, diabetes and insomnia, and another eight products filed new INDs for cancers, vaccines and other indications. Twelve projects entered Phase III trials, including an RSV vaccine, an ovarian‑cancer ADC and a therapy for idiopathic pulmonary fibrosis. Looking ahead, the ESMO 2026 conference in Madrid (Oct 23‑27) will showcase 43 Chinese innovative drug studies. Highlights include next‑generation ADCs, bispecific antibodies and novel immunotherapy combos such as Innovent’s IBI363 (PD‑1 + IL‑2) and CSPC’s JMT108 (PD‑1 + IL‑15). The event is expected to accelerate licensing and clinical adoption of these assets. Investors are watching the STAR Market Innovative Drug ETF (589120), which concentrates on the sector’s top players, but the fund carries high risk and is suited only for those with strong risk tolerance.
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