"Going global" volume expansion and performance improvement: The innovative drug industry enters the commercialization realization phase

Securities Daily reporter Li Wenshan

On March 28, the latest data released externally by the National Medical Products Administration (NMPA) showed that in the first three months of this year, the total amount of inbound and outbound licensing transactions for China’s innovative drugs exceeded $60 billion, approaching half of the total for 2025. The NMPA’s latest statistics also indicate that as of March 27, China has approved 10 innovative drugs for 2026, including 2 imported and 8 domestically produced. China’s innovative drugs have achieved historic breakthroughs and maintained a strong development momentum.

According to data previously disclosed by the NMPA, in 2025, China approved 76 innovative drugs throughout the year, setting a new record; the total value of outbound licensing transactions for innovative drugs also reached a historic high. That year, a total of 157 licensing deals were completed, with an upfront payment of $7.0 billion and a total transaction value of approximately $135.7 billion.

Innovative drug business development (BD) is a core business model in which pharmaceutical companies leverage buying, selling, cooperation, and other methods to globally integrate innovative drug resources and maximize commercial value. Outbound licensing transactions for innovative drugs are one of the key components of BD.

Additionally, a medical industry research report published by Huatai Securities on March 20 showed that since 2026, domestic innovative drugs have completed 45 “going global” BD deals, a 73% year-over-year increase; the disclosed total amount reached $57.5 billion, up 135%; the upfront payments totaled $4.0 billion, a 1,095% increase. From a global perspective, from the beginning of the year to date, the proportion of domestic innovative drug BD projects and disclosed amounts in the global total are 20% and 75%, respectively. Among the 21 major deals already reached, 15 involved Chinese transactions, accounting for over 70%.

“Currently, multinational pharmaceutical companies and overseas PE institutions are increasingly focused on Chinese assets, with a clear strengthening of cooperation willingness. This indicates that China’s innovative drugs are gaining broader international recognition, and the quality of supply is improving. Based on this trend, it is expected that China’s innovative drug BD transactions will continue to show high certainty and sustained growth potential,” said Liu Shengyu, partner at Wuxi Yiku Software Technology Co., Ltd., in an interview with Securities Daily.

Corresponding to the surge in “going global” activities, the performance of domestic innovative drug companies is experiencing a concentrated breakout.

According to Wind Information data, as of March 29, 39 innovative drug companies had released their 2025 performance quick reports. Among them, 12 companies reported year-over-year increases in net profit attributable to shareholders, and 5 companies turned losses into profits. Several companies’ core products have entered the commercialization and revenue realization phase.

Specifically, BeiGene Co., Ltd. achieved its first full-year profit in 2025. The company’s total operating revenue reached RMB 38.205 billion, a 40.4% increase; net profit attributable to shareholders was RMB 1.422 billion, reversing the net loss of the previous year. The global sales of its core product BeyoZi reached RMB 28.067 billion, up 48.8%, with overseas sales continuing to rise, demonstrating China’s innovative drugs’ global competitiveness.

Shenzhen Microchip Biotechnology Co., Ltd. also achieved significant breakthroughs. In 2025, its total operating revenue was RMB 910 million, up 38.32%; net profit attributable to shareholders was RMB 53.46 million, successfully turning a loss into a profit. Its core product Sigletin (sodium) showed notable commercialization results, with sales revenue increasing by 123% year-over-year.

TriGene (Shanghai) Pharmaceutical Co., Ltd. reported total operating revenue of RMB 4.199 billion in 2025, a 251.81% increase; net profit attributable to shareholders was RMB 2.939 billion, up 317.09%. The company stated that this was mainly due to an important cooperation with Pfizer Inc. (PFE.N) during the reporting period, receiving the upfront licensing payment from Pfizer for Project 707, and recognizing revenue of approximately RMB 2.89 billion accordingly.

The healthy development of the innovative drug industry relies on the continuous release of policy dividends and ongoing industry ecosystem improvements. This year’s Government Work Report explicitly emphasized promoting high-quality development of innovative drugs and medical devices to better meet the diverse medical and medication needs of the people.

“The sustained release of policy benefits is a key driver of corporate performance growth. China leads the world in certain biopharmaceutical R&D segments such as antibody-drug conjugates, with rapid R&D speed and low costs. Going forward, more domestic innovative drugs will achieve breakthroughs in overseas licensing. Leading pharmaceutical companies will continue to strengthen profitability advantages and further diversify commercialization pathways for innovative drugs,” said Tu Honggang, chairman of Wuxi Yiku Software Technology Co., Ltd., in an interview with Securities Daily.