The boom in innovative drug BD is expected to continue this year: multiple fields such as oncology and metabolism show potential

In 2025, China’s innovative drug business development (BD) expansion into overseas markets is set to ignite the global pharmaceutical industry, and this trend is expected to continue into 2026.

According to data previously released by the National Medical Products Administration, in 2025, China’s licensing transactions for innovative drugs abroad exceeded $130 billion, with over 150 licensing deals, setting a new record. The BD boom continues into 2026, with multiple official announcements of deals in the first two months.

On February 11, Revo Biologics (6938.HK), known as the “First Hong Kong-listed Nucleic Acid Drug Company,” announced a global exclusive licensing agreement with Madrigal. The two parties will jointly develop six innovative siRNA therapies targeting fatty liver disease related to metabolic dysfunction (MASH), based on Revo Biologics’ independently developed liver-targeting RiboGalSTAR platform. Under the agreement, Revo Biologics will receive an upfront payment of $60 million, and upon reaching milestones such as clinical development, regulatory approval, and commercial sales, there is potential to receive a total of $4.4 billion, including the initial payment and milestone payments. The company will also enjoy royalties based on global net sales of the合作 products.

This is not Revo Biologics’ first collaboration with overseas biopharmaceutical companies. In January 2024, the company reached a BD deal with the well-known multinational pharmaceutical company Boehringer Ingelheim (BI), with potential total transaction value exceeding $2 billion. The collaboration involves co-developing innovative nucleic acid therapies for non-alcoholic or metabolic dysfunction-related fatty liver disease.

According to a research report from China Renaissance, by early 2026, several BD deals have already been finalized, reflecting a high level of enthusiasm for China’s innovative drugs going abroad. Most of these collaborations involve molecules in Phase 2 or Phase 3 clinical research, validated by early clinical data from China. Chinese companies are likely to be cautious about transferring preclinical molecules, and future overseas molecules will mostly be based on early clinical trial data from China to achieve higher transaction value.

So, what other fields might see BD opportunities in 2026? Based on publicly available BD data from recent years, oncology remains the most active area. A notable example is the deal between 3SBio and Pfizer in 2025, centered on the PD-1/VEGF bispecific antibody SSGJ-707, with an upfront payment of $1.25 billion, setting a new record for China’s innovative drug BD upfront payments. On January 12, 2026, Rongchang Biotech signed an exclusive licensing agreement with AbbVie for the PD-1/VEGF bispecific antibody RC148, receiving an upfront payment of $650 million, with potential total deal value reaching $5.6 billion.

The aforementioned China Renaissance report indicates that PD-(L)1/VEGF could become cornerstone oncology drugs, with multinational corporations competing fiercely for market share. With AbbVie’s licensing of Rongchang Biotech’s RC148, competition in the PD-(L)1/VEGF space is intensifying. Clinical efficiency, breadth, and the richness of combination therapies (especially ADC combinations) will be key factors in winning. A research report from Founder Securities also suggests that in oncology, immune-oncology (IO) plus antibody-drug conjugates (ADC) are currently dominant as foundational therapies. The second-generation IO and ADC fields remain hot, with multiple major deals involving PD-1 bispecific antibodies. As PD-1 patents expire, second-generation IO agents (such as bispecific PD-1/Triple Antibodies) are expected to gradually replace first-generation PD-1 monotherapies, with a focus on second-generation IO and ADC.

Beyond oncology, there are BD opportunities in immuno-respiratory diseases, including weight loss, lipid reduction, cardiovascular, and metabolic diseases. Founder Securities notes that the immuno-respiratory field features many blockbuster products; however, patent expirations threaten older drugs like adalimumab and secukinumab. Despite this, innovation and BD demand in the autoimmune sector remain strong, with bispecific antibodies, T-cell engagers (TCE), and in vivo CAR-T therapies becoming popular. In cardiovascular and metabolic areas, the market size for related treatments continues to grow. GLP-1 drugs have been revolutionary in recent years, and new directions include oral small-molecule drugs and weight-loss/muscle-building medications. Lipid-lowering drugs are also attracting attention with new technologies and mechanisms. In the CNS (neuroscience) field, research on Alzheimer’s disease, depression, and other neuropsychiatric disorders remains highly active.

It is worth noting that, amid high transaction volumes and values, some BD collaborations have been terminated, leading industry voices to suggest that some domestic innovative drugs are being “returned.” Industry insiders previously told The Paper that BD models are becoming more diverse and that termination of collaborations is an inherent risk. Reasons behind such “returns” vary: some are due to slow R&D progress, some because data quality was insufficient, and others because of strategic adjustments by the partnering companies. As long as the assets of innovative drugs retain value, alternative BD opportunities can still be pursued.

(Source: The Paper)