Global Pharma Boosts China Licensing Deals in 2025

In 2025, U.S. and global pharmaceutical companies have increasingly engaged in billion-dollar licensing deals with Chinese biotech firms, especially in oncology and rare diseases, reflecting a shift in drug development strategy. China now accounts for 25% of global drug development, up from 2%, bolstered by regulatory reforms and an influx of top scientific talent. This rapid progress has raised concerns about China potentially surpassing U.S. dominance in pharmaceutical innovation. The U.S. is also contending with internal healthcare policy changes, such as proposed Medicaid provider tax cuts and debates over drug advertising bans. Stock market volatility has affected biotech firms like Regencell Bioscience, which saw sharp valuation swings despite lacking revenue or approvals. Meanwhile, generic drugmakers have been reluctant to expand U.S. manufacturing due to ongoing tariff uncertainties.