China’s Growing Influence in the U.S. Biopharma Industry
A little-known biotech company stunned the industry last spring when Summit Therapeutics announced its experimental cancer drug showed greater effectiveness than Merck’s Keytruda. The drug was licensed from Chinese company Akeso Inc., highlighting a growing trend of U.S. companies sourcing breakthrough medicines from China.
Almost 30% of Big Pharma deals with at least $50 million up front involved Chinese companies in 2024, a significant rise from 20% the previous year and none five years ago, according to DealForma.
U.S. regulators have historically been cautious about Chinese clinical trial data. Summit Therapeutics, for example, is running additional global Phase 3 trials for its cancer drug ivonescimab to meet FDA standards.
There are also concerns that the U.S. government could intervene. Lawmakers have proposed measures like the Biosecure Act to restrict partnerships with Chinese biotech firms. Given the U.S.’s protectionist stance on AI and semiconductors, similar policies could extend to biopharma.
Source: GUARDIANGLOBE
