China Biotech’s Summer Surge: The Latest Deals, Data, and Policy Moves

Happy Tuesday!

Chinese biotech stocks surge on licensing boom. Mega deals are back, but can they sustain the momentum?

China biotech has come a long way, and now it’s in its prime time. China biotechs is reshaping US pharma pipelines.

In the U.S., earnings season starts on Tuesday. Major earnings from Johnson&Johnson, and especially its cell therapy, Carvykti, licensed from Nanjing Legend, will be closely watched. Last quarter, the sales reached $300million, the best quarter ever, and soared from $114million same quarter in 2023.

Let’s dig deeper.

Three to Know

1. Chinese biotech stocks surge on licensing boom: The Hang Seng Biotech Index is up ~62% YTD, fueled by major out-licensing deals—like 3SBio’s $1.25B Pfizer PD‑1 agreement and Merck’s $1.9B GLP‑1 deal with Hansoh—highlighting rising investor optimism (FT, Bloomberg)

2. China biotechs reshape US pharma pipelines: Jefferies reports an 11% rise in China-to‑West out-licensing deals in the last week alone, as Western firms increasingly tap Chinese innovation (Fierce)

3. China-to-West licensed drug assets at record high: A Stat News piece shows China’s out-licensing value reached a five-year peak in 2024—$41.5 B, a 66% increase over 2023 (STAT).

Market Overview

Stock Spotlight

Jiangsu Hengrui continues to diversify its pipeline and expand global partnerships, reporting regulatory wins and new alliances with Merck and Kailera in July 2025. The company’s $1.3 billion Hong Kong share offering, completed in late June, is fueling further R&D and international growth.

WuXi AppTec expects a 44% YoY jump in H1 2025 net profit, citing strong growth in its contract research and manufacturing business. The Company is expected to report its first year half earning on July 29th.

WuXi Biologics is advancing commercial manufacturing in Chengdu, China and expanding local partnerships.

Big Name Update

Ascentage Pharma (NASDAQ: AAPG; HKEX: 6855) announced that its proprietary novel Bcl-2 selective inhibitor lisaftoclax (APG-2575) has been approved by China’s National Medical Products Administration (NMPA) for the treatment of adult patients with chronic lymphocytic leukemia/small lymphocytic lymphoma (CLL/SLL) who have previously received at least one systemic therapy including Bruton’s tyrosine kinase (BTK) inhibitors, which makes lisaftoclax the first Bcl-2 inhibitor receiving conditional approval and marketing authorization for the treatment of patients with CLL/SLL in China, and the second Bcl-2 inhibitor approved globally. 

Sino Biopharm’s Chia Tai-Tianqing Pharmaceutical Group Co., Ltd (“CTTQ) pays Inventiva (Euronext Paris and Nasdaq: IVA) a $10 million milestone payment.
This payment is part of their 2022 licensing and collaboration agreement for the development and commercialization of Inventiva’s lead compound, lanifibranor, in Mainland China, Hong Kong, Macau, and Taiwan. The milestone follows the recent settlement of a major tranche of Inventiva’s structured financing.

Under the agreement, Inventiva remains eligible for up to $265 million in additional milestone payments tied to clinical, regulatory, and commercial achievements, plus low single-digit royalties on future sales if lanifibranor is approved. Lanifibranor has received Breakthrough Therapy Designation for MASH from both the U.S. FDA and China’s NMPA, and CTTQ is participating in Inventiva’s ongoing Phase 3 NATiV3 trial in China. CTTQ has also completed a Phase 1 bridging study, confirming no significant ethnic differences, which supports regulatory filings in China based on the global Phase 3 data.

 Other Notable Company News

Corxel Pharmaceuticals Limited (CORXEL), in collaboration with its partner, Chengdu Vincentage Pharma Co., Ltd. (Vincentage), announced the positive China Phase 2 clinical results for its oral small molecule once-daily glucagon-like peptide-1 receptor agonist (GLP-1 RA) CX11/VCT220, presented via poster presentation at the American Diabetes Association’s (ADA) 85th Scientific Sessions. The abstract will also be published online on the Diabetes® journal’s website.

Connect Biopharma Holdings Limited (Nasdaq: CNTB) and its collaborator and exclusive licensee in China, Simcere Pharmaceutical Co., Ltd. (“Simcere”), has submitted its New Drug Application for rademikibart to the National Medical Products Administration of China (“NMPA”) for the treatment of atopic dermatitis (“AD”) in adults and adolescents.

Brii Biosciences and Joincare Pharmaceutical Group, enter exclusive agreement to research, develop, and commercialize BRII-693 in Greater China. Joincare will take full responsibility for clinical development, regulatory approval, and commercialization of the drug in the region. In return, Brii Bio receives an upfront payment, with additional milestone payments and tiered royalties based on net sales to follow.

BRII-693 is a novel synthetic lipopeptide antibiotic designed to treat critically ill patients with multidrug- and extensively drug-resistant (MDR/XDR) gram-negative bacterial infections, including those caused by carbapenem-resistant Acinetobacter baumannii, Pseudomonas aeruginosa, and Enterobacterales. The drug was engineered to improve antibacterial potency and reduce the kidney and nerve toxicity associated with older polymyxin antibiotics. Phase 1 studies showed a favorable safety and pharmacokinetic profile in both Chinese and non-Chinese participants, and it has received IND approval in China for a bridging study supporting a future Phase 3 registration trial in hospital-acquired and ventilator-associated bacterial pneumonia.

Brii Biosciences retains rights to BRII-693 outside Greater China and will continue to invest in its broader anti-infective pipeline.

 Policy Watch

NMPA Proposes Nationwide 30-Day Clinical Trial Review
China’s National Medical Products Administration (NMPA) has proposed expanding its fast-track 30-day review pathway for innovative drug trials nationwide. Stakeholder comments are due by July 16, 2025, and the move is expected to accelerate clinical development and benefit both domestic and multinational sponsors.

What to Watch

On June 16, J&J will report its second quarterly and half-year earnings, which will show how its licensed cell therapy, from Nanjing Legend, will perform in the year half of 2025. It had the best first quarter ever in the year’s first three months.

Thanks for reading

-Brian

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