Cross-border trends in uncertain times for China biotech
A new start-up model and licensing deals fueled by new modalities sustain the momentum of China biotech’s innovation engine
Decisions made in the past two years show how China’s innovators are seeking to capture the value of assets created in China even as the country’s first bear market and geopolitical tensions have pushed the nation’s biotechs into finding alternative ways to finance their pipelines of first- and best-in-class assets.
U.S. lawmakers began increasing pressure on President Joe Biden in 2022 to curb U.S. investing in China, a push that has a through line to the introduction of the Biosecure Act early this year. The legislation, which seeks to rein in Chinese CDMOs and genomics companies, has forced biotechs in China and the U.S. to rethink their strategies for clinical development, business development and beyond. It has also cut billions in market cap from the valuations of WuXi AppTec Co. Ltd. (Shanghai:603259; HKEX:2359) and WuXi Biologics Inc. (HKEX:2269). Although Biosecure’s momentum has slowed in the U.S. Congress, the legislation could still reach President Joe Biden’s desk this year. ...