Chinese Innovative Drug Assets Attract Major Foreign Acquisition, Cooperation Models Diversify
On March 24, Securities Daily reported that Jiangyuan Investment confirmed OuroMedicines, a company it backed in early 2025, has entered into an acquisition agreement with Gilead Sciences valued at up to USD 2.175 billion (approximately RMB 15.8 billion). OuroMedicines’ principal innovative asset originates from Connoia Biopharmaceutical Technology Co., Ltd. Connoia announced on March 24 that it expects to receive up to USD 320 million upon completion of the transaction.
This substantial deal exemplifies renewed foreign interest in Chinese innovative drug assets and highlights their competitiveness on the global stage. Speaking at the Second Biopharma China Forum in Shanghai on March 24–25, Wu Zheng, Head of Healthcare Investment Banking for JPMorgan in China, told Securities Daily that the trend of Chinese innovative drug assets partnering with overseas pharmaceutical companies to expand internationally is likely to continue, and that cooperation models are diversifying rapidly. Wu noted that since the start of 2026, average deal sizes for outbound transactions have increased by more than 50% year‑on‑year, with large transactions becoming more frequent and licensing arrangements evolving into multiple collaborative formats.
Industry data confirm a surge in outbound licensing activity. NextPharma database figures show that in 2025 China’s outbound licensing transactions for innovative drugs totaled USD 135.655 billion, ranking first globally. From January through February 25, 2026, the sector recorded 44 outbound licensing deals with a combined value of USD 53.276 billion, already exceeding one‑third of the prior year’s total.
Multinational pharmaceutical companies and overseas investors are increasingly active in sourcing projects in China. At the 11th BioIndustry Exhibition, leading global firms including Bayer and Pfizer participated. Liu Dan, Managing Partner at Pivotal Biwo Investment, said that in recent months senior executives at the global vice‑president level from top multinational drugmakers have been visiting China almost monthly for due diligence and negotiations.
The OuroMedicines transaction illustrates the NewCo approach, in which Chinese innovative assets and investment firms form a new company to operate specific pipelines and pursue international licensing. Connoia licensed global commercialization rights for its BCMA/CD3 bispecific TCE antibody (excluding mainland China, Hong Kong, Macau and Taiwan) exclusively to OuroMedicines in November 2024, receiving approximately 15% equity in OuroMedicines as part of the arrangement. In early 2025, Jiangyuan Investment and other backers participated in OuroMedicines’ Series A financing.
Market participants view the hybrid “equity plus licensing” structure as effective for internationalizing core pipelines, spreading R&D risk and enhancing returns. Wu Zheng explained that larger innovative drug companies tend to favor co‑development and co‑commercialization frameworks to preserve future upside, while smaller firms may pursue platform‑level outbound strategies, packaging their R&D platforms for collaboration with multinationals through research partnerships or equity investments to secure promising early‑stage projects.
Liu Dan added that the “multinational pharmaceutical company plus local R&D platform” model merits attention because it leverages mature domestic platforms to accelerate iterative innovation and better align products with overseas market needs. Such partnerships can also enable the construction of comprehensive product development systems around specific mechanisms or therapeutic areas. Looking ahead, the industry expects China to produce a cohort of leading pharmaceutical companies with robust international competitiveness.
