On December 1, 2024, the 2024 China BioMed Innovation and Investment Conference (CBIIC) held the License-in/out & Commercialization Forum in Guangzhou. At this critical juncture for the Chinese pharmaceutical industry seeking breakthroughs, the forum focused on global cooperation and new developments for enterprises. It brought together entrepreneurs, investors, and experts to explore deeper insights and provide new ideas and perspectives for licensing deals at various stages of business and product development. The forum was moderated by Becky Wong, Project Manager of the Hong Kong iCampus at AstraZeneca.

Chen Bing, Vice President of AstraZeneca International Business Development and Venture Fund, delivered a keynote speech titled “How MNC Accelerate Access to China Innovation: Reflections from AstraZenec”. He discussed the institutional advantages of China’s policy-driven approach to advancing the pharmaceutical industry. As one of the first multinational pharmaceutical companies to enter the Chinese market, AstraZeneca has continuously deepened its presence in China, accelerating the integration of local R&D with international practices. Through a closed-loop system covering innovation R&D, manufacturing, and commercialization, AstraZeneca has adhered to its commitment to R&D, manufacturing, and innovation in China. Since 2023, AstraZeneca has reached global licensing agreements with 10 Chinese innovative pharmaceutical companies in the fields of oncology, cardiovascular, and metabolic diseases, with a total deal value exceeding $8.5 billion. Chen Bing emphasized AstraZeneca’s approach of open collaboration, blending internal and external innovation strategies, and its hope to share its feasible experiences with both the ecosystem it operates in and China’s biopharmaceutical industry.

In the keynote titled “Overseas Strategy and Execution for Chinese Innovative Drug Companies,” Michael Shi, Executive Vice President, Head of R&D and Chief Medical Officer at Hutchmed, shared the company’s experience in launching its innovative drug, Furufenib, in major global markets, including the United States, Europe, and Japan. He pointed out that the success of Chinese innovative drugs abroad is dependent on differentiated product strategies, clinical research and trial designs that meet the regulatory requirements of different countries, and stable manufacturing processes with a comprehensive quality management system, all of which are essential for international recognition.

Hua Yutao, Vice President of Shanghai BiBo Biopharma Engineering Co., Ltd., delivered a keynote on “Leading the Fourth Wave of Biologics Manufacturing.” He highlighted that, in recent years, the biopharmaceutical industry has produced many groundbreaking products, but many small and medium-sized enterprises lack the capacity to scale production to meet demand. In response, BiBo Biopharma proposed that the biopharmaceutical industry is entering its fourth wave, driven by CDMOs, with large-scale stainless-steel production lines (up to 30,000 liters) as the core technology. This wave will reshape the global industry landscape, promoting large-scale, low-cost biopharmaceutical production and benefiting patients worldwide.

The forum’s panel discussion on “Global Cooperation Strategies and Expansion” was moderated by Zhao Xiaobin, President and Founder of Zhejiang Haichang Biotech Co., Ltd. Panelists included Yang Xi, Chairman of Guoju Capital; Wang Xiaomei, Founder & CEO of PathoAI; Peng Wei, Principal Investigator at Guangzhou National Laboratory; Liu Tianran, Partner of Vertex Ventures China; Cao Yong, VP of Business Development China at Beigene; Chandler Chen, Executive Director and Head of iCampus & Regional Innovation Center, AstraZeneca China; and Xu Jinghui, General Manager of Strategy & Innovation at Cytiva.

During the panel, the participants agreed that the biopharmaceutical industry must adopt a global perspective to address challenges posed by geopolitical factors and market differences. The expansion of Chinese innovative pharmaceutical companies abroad presents both opportunities and challenges. Companies must carefully choose between mature markets, such as Europe and the US, and emerging markets based on product characteristics and market demand. From a source innovation perspective, domestic research institutions have increasingly become sources of applied innovation due to effective institutional reforms, and robust innovative technologies are critical to the international recognition of China’s innovative drugs. From a strategic perspective, the European and US markets carry higher investment risks but also offer larger potential returns, with higher requirements for product innovation and differentiation. Emerging markets, however, face issues such as regulatory recognition that need to be addressed. Companies can mitigate risk through technology transfer, licensing agreements, or the establishment of new companies (NewCos). From a biomanufacturing perspective, critical materials, such as culture media, filters, and purification materials, will impact the speed of drug market entry, particularly with respect to MSAT and CMC changes during technology transfer. In terms of investment, whether through active asset swaps or passive actions due to capital pressure, 2024 has seen a significant rise in licensing transactions. Positive aspects include international recognition of China’s innovative assets, record-high upfront payments for cooperation deals, and increasing recognition of "Made in China" and "Created in China" value. The future will see Chinese innovative drug companies face the international market with greater strength.

The panel on “Overseas Expansion Accelerates Development of the Local” was moderated by Wang Xun, CIO of Huagai Capital, Huagai Healthcare Investment Management (Beijing) Co., Ltd. The discussion involved Jason Yang, CEO & President of R&D, Executive Director of the Board CStone Pharmaceuticals; Cao Fei, Co-founder & COO of InxMed; and Pony Lu, Executive Director & CEO of VISEN Pharmaceuticals.

During the discussion, panelists focused on the NewCo model and overseas expansion strategies, agreeing that going global has become a crucial development direction for Chinese pharmaceutical companies. However, they stressed the need for caution when choosing partners and expansion strategies. In product transactions, Chinese companies should focus on benefit distribution, retaining promising products for in-house development to increase their commercial value. The NewCo model, while useful in specific market conditions, is not a long-term solution for Chinese companies looking to expand internationally. Companies should establish an international mindset from the outset and develop a better value-discovery mechanism to ensure their sustainable development.

This forum provided a valuable exchange platform for the pharmaceutical industry and played a significant role in promoting global cooperation and assisting local pharmaceutical companies in their overseas expansion. In the future, the China Pharmaceutical Innovation and Research Development Association will continue to collaborate with industry stakeholders to drive innovation and development in the global wave of collaboration, ultimately bringing more benefits to patients worldwide.