US Pharma Signs $18.3B Licensing Deals with China in 2024

U.S. pharmaceutical companies are increasingly partnering with Chinese biotech firms, signing 14 licensing agreements valued at $18.3 billion in 2024, a significant rise from just two deals the previous year. This surge reflects a strategic shift to replenish drug pipelines as patents on $200 billion worth of existing medicines approach expiration, with Chinese firms offering innovative, high-quality, and cost-effective therapies. Chinese pharmaceutical innovation has advanced rapidly, growing from 2% to 25% of global drug development, aided by regulatory changes and talent returning to China, making it a major player in next-generation therapies. Despite geopolitical tensions, intellectual property deals between U.S. and Chinese firms are exempt from tariffs, further encouraging this collaboration. Industry experts note that roughly one-third of licensed assets in 2024 come from China, a trend expected to grow, as U.S. pharma firms seek to accelerate market entry with these partnerships. While China is closing the gap in pharmaceutical innovation, the U.S. retains key advantages but must adapt to this evolving landscape to maintain global leadership.