Biopharma 2025: The Evolution of NewCo and Multi-Dimensional Collaboration of Chinese Innovative Drug Companies

As license-out waves continue to bring global recognition to Chinese innovative drug companies, China’s biopharmaceutical industry is entering a period of profound structural transformation in 2025.

Industry collaboration has evolved from traditional single-pipeline licensing into diversified, strategic models, including newly established companies (NewCo), joint ventures (JV), and co-development partnerships. This evolution not only reflects the rising quality of Chinese innovation but also signals a new direction for global pharmaceutical resource integration.

Over the past year, landmark transactions have exemplified this trend. One notable pattern is the deep integration between Big Pharma and leading Biotech companies, which is becoming a new norm. For example, China Biopharma, a leading Hong Kong-listed pharmaceutical company, fully acquired the star biotech company LiXin Pharma for approximately USD 500 million, marking a milestone in the domestic integration of Chinese innovation.

Meanwhile, the NewCo model has become an efficient pathway for taking innovative assets abroad. Hengrui Medicine, for instance, licensed the overseas rights of its Phase III cardiac myosin inhibitor HRS-1893 to Braveheart Bio, a U.S. NewCo supported by international investors, in a deal totaling USD 1.088 billion, including equity consideration. Other top Biotech companies such as Conoya, Xianweida, Hepol Pharma, Myway Bio, and Anmai Bio are also leveraging the NewCo model to unlock new growth.

Strategic alliances combining licensing with co-development and commercialization are also gaining momentum. Innovent Biologics and Takeda, for example, entered a global strategic collaboration that provides Innovent with USD 1.2 billion upfront, including USD 100 million as strategic equity investment.

These complex transactions are fueled by multiple factors both internal and external. Internally, the NewCo model offers Biotech companies a high-efficiency channel for risk sharing, resource complementarity, and monetization in a challenging financing environment. Externally, multinational corporations (MNCs) continue to show strong interest in Chinese innovative assets, adopting more focused and strategic approaches.

In 2025, collaborations between MNCs and Chinese companies account for nearly 30% of MNCs’ global deals. They are targeting hot areas such as bispecific antibodies, ADCs, TCEs, and GLP-1 therapeutics, as well as AI-driven early drug discovery. Future partnerships between Chinese innovative drug companies and MNCs are expected to go beyond simple buyer-seller relationships, entering a new stage of multi-dimensional collaboration characterized by co-creation, shared risks, and shared rewards.

Against this backdrop, BIOCHINA2026, to be held in March 2026, will host a dedicated session titled:

“The Evolution of NewCo and Beyond: Multi-Dimensional Collaboration between MNCs and Chinese Innovative Drug Companies”. The session offers timely insights into not only transaction models but also how Chinese innovative companies can position themselves as core players in the global pharmaceutical value network.

BiOFUNDING Forum

March 12 | 15:15–16:15

Session: The Evolution of NewCo and Beyond: Multi-Dimensional Collaboration between MNCs and Chinese Innovative Drug Companies

Speakers:

• Danjie Huang, Vice President, Bayer Prescription Medicine & Head of China Co-Innovation Center
• Datong Liu, Chairman & CEO, Myway Bio
• Chenbing Wu, CEO, Anmai Bio
• Tony Cheng, Ph.D., Custom Solutions, Norstella China