China’s Biotech Boom Draws Global Pharma Giants
South China Morning Post
Global pharmaceutical giants are increasing their investments in China’s fast-growing biotech companies, encouraged by the sector’s potential for valuation growth, according to speakers at the Global Health Summit, which concluded in Hong Kong on Saturday. During a panel discussion on Friday, Xu Chenming, head of the healthcare group Citic Securities, said, “Multinational pharmaceutical companies are shifting their business strategies in China away from asset-heavy operations. They are moving towards investing in companies with strong innovation capability, as well as deeper integration with Chinese partners.”
On Wednesday, AstraZeneca announced that it had established a joint venture with China’s innovative drug developer CSPC Pharmaceutical Group to build a drug manufacturing site in Shijiazhuang, the capital of Hebei province. Initially, the joint venture is expected to focus on manufacturing and supplying products for the global market, with plans to expand its product line in the future. Earlier, In May, Swedish wound-care and surgical-products provider Mölnlycke formed a joint venture with Zhejiang-based Zhende Medical, a domestic supplier of medical care and protective products, to combine their business portfolios and co-develop new products. chairman of Huatai United Securities Jiang Yu said, “China has become an important global source of innovation in pharmaceutical deal-making.”
However, Cross-border deals for innovative drugs reached a record US$110 billion in the first half of 2026, equivalent to about 80 per cent of last year’s total, according to state media. Hong Kong’s healthcare and drug sector saw 11 companies raise a total of HK$14.1 billion (US$1.8 billion) through initial public offerings during the first half of the year, according to Deloitte. The number of pre-profit biotech listings rose to seven from six a year earlier.
