News
Academy
Editorial PodcastsEditorial VideosPeer ExchangeProfiles in Medicine
Conference CoverageConference Listing
Pharmaceutical Executive
Partner Perspectives
Content Engagement HubsE-BooksEventsSponsored PodcastsSponsored VideosWebcastsWhitepapers
Subscribe
Corporate CommunicationsCorporate CommunicationsCorporate CommunicationsCorporate CommunicationsCorporate Communications
Direct-to-ConsumerDirect-to-ConsumerDirect-to-ConsumerDirect-to-Consumer
Emerging BiopharmaEmerging BiopharmaEmerging Biopharma
IR Licensing and PartnershipsIR Licensing and PartnershipsIR Licensing and Partnerships
Market AccessMarket AccessMarket AccessMarket Access
Medical AffairsMedical AffairsMedical AffairsMedical Affairs
OperationsOperationsOperationsOperationsOperations
Patient EngagementPatient Engagement
RegulatoryRegulatoryRegulatoryRegulatory
Sales & MarketingSales & MarketingSales & MarketingSales & MarketingSales & Marketing
Spotlight -
  • Latest Executive Roundtables
  • Asembia 2025
  • Sales Effectiveness
IS1
  • Applied Clinical Trials

  • BioPharm International

  • Cannabis Science and Technology

  • Chromatography Online

  • Nutritional Outlook

  • Pharmaceutical Commerce

  • Pharmaceutical Executive

  • Pharm Tech

  • Spectroscopy Online

  • Turbo Machinery Magazine

Corporate CommunicationsCorporate CommunicationsCorporate CommunicationsCorporate CommunicationsCorporate Communications
Direct-to-ConsumerDirect-to-ConsumerDirect-to-ConsumerDirect-to-Consumer
Emerging BiopharmaEmerging BiopharmaEmerging Biopharma
IR Licensing and PartnershipsIR Licensing and PartnershipsIR Licensing and Partnerships
Market AccessMarket AccessMarket AccessMarket Access
Medical AffairsMedical AffairsMedical AffairsMedical Affairs
OperationsOperationsOperationsOperationsOperations
Patient EngagementPatient Engagement
RegulatoryRegulatoryRegulatoryRegulatory
Sales & MarketingSales & MarketingSales & MarketingSales & MarketingSales & Marketing
IS1
  • Applied Clinical Trials

  • BioPharm International

  • Cannabis Science and Technology

  • Chromatography Online

  • Nutritional Outlook

  • Pharmaceutical Commerce

  • Pharmaceutical Executive

  • Pharm Tech

  • Spectroscopy Online

  • Turbo Machinery Magazine

    • Academy
    • Partner Perspectives
    • Subscribe
Advertisement

Commentary

Article

February 12, 2025

Pharmaceutical Executive

Pharmaceutical Executive: February 2025
Volume45
Issue 1

Navigating Cross-Border Pharma Deals: Key Trends and Lessons Out of China

Author(s):

Bruce Liu,Martin Slusarczyk, PhD

The importance of a strategic approach and proper due diligence in unlocking the full potential of these arrangements.

Bruce Liu, Partner

Bruce Liu, Partner

Martin Slusarczyk, Director, Zurich

Martin Slusarczyk, Director, Zurich

Selene Peng, Senior Consultant, Shanghai

Selene Peng, Senior Consultant, Shanghai

Joki Wallace, Consultant, New York

* All with Simon-Kucher & Partners’ life sciences division

Joki Wallace, Consultant, New York

* All with Simon-Kucher & Partners’ life sciences division

Amid macroeconomic uncertainties and geopolitical headwinds, cross-border deals have seen remarkable growth over the past year, and the momentum appears to be even stronger now in 2025.

Asia-Pacific has emerged as an epicenter for cross-border deals, drawing increasing interest from global pharma majors and investors alike, with China, Korea, and Australia as some of the hotspots. In particular, innovations from China have become a major source to replenish the R&D pipelines of global pharmaceutical companies. DealForma reports that around a third of external molecules of large pharma are from China, and Simon-Kucher estimates that the number and combined value of China’s licensing-out deals has increased by around 40% and 90%, respectively, from 2023, indicating both strong momentum and larger deal size.

Growth drivers

Taking a closer look at the top 10 China out-licensing deals in 2024 (see Table 1 below), many of the assets feature novel targets, new mechanisms of action, and next-generation modalities such as bispecific antibodies and small interference RNA therapies. In contrast to the heavy focus on oncology in the past, 2024 saw activity in therapeutic areas broadened to cardiovascular, immunology, and liver diseases, as well as diabetes and obesity.

There is also a notable shift in risk appetite, with eight of the top 10 deals in 2024 focusing on preclinical or Phase I assets, underscoring investor willingness to take on risk in exchange for potentially transformative innovations. Meanwhile, the larger deals appear to be still gravitating toward those with more established mechanisms of actions and sizable markets, including Argo Biopharma’s deal with Novartis for four RNAi assets at $185 million upfront and $4.2 billion in total value; and LaNova’s out-licensing of PD-1/VEGF bispecific antibody to MSD at $588 million in an upfront payment and $2.7 billion additional bio-dollars.

Jiangsu Hengrui’s GLP-1 deal in 2024 stood out, not just because of its $6 billion price tag, which ranked the highest, but also due to the “NewCo” deal structure it trailblazed. Under the construct, the assets were licensed to a newly incorporated Delaware company, co-owned by Hengrui, and a consortium of investment firms. Hengrui would receive typical payouts, including upfront and milestones, while retaining a significant equity share of the NewCo. The structure helps to de-risk geopolitical uncertainties, combines near-term returns and future upsides, and affords NewCo the possibilities to pursue a wide range of strategic options, including capital market listing, M&As, licensing deals, and spin-offs as needed. The model has since been emulated by half a dozen deals so far, including two “NewCos” in early 2025 by Keymed and Harbour BioMed, respectively.

Click to enlarge

Click to enlarge

Besides out-licensing deals, outright acquisitions have been on a steady rise in Asia, taking advantage of the relatively low valuation across the sector. Among the more sizable ones, Genmab acquired ProfoundBio for $1.8 billion for the latter’s oncology assets and antibody-drug conjugate platform; and BioNTech made major inroads into bispecific antibodies with its recent acquisition of Biotheus for $950 million, establishing its footprints in China in one fell swoop.

Knowledge is power

Navigating cross-border deals requires a holistic understanding of the assets and deal structures, but, more importantly, the differences across markets. These differences span across legal, regulatory, and clinical aspects, as well as the competitive environment and market access landscape. A strategic approach and proper due diligence are key to managing the multifold complexities and unlocking the full potential of cross-border deals in Asia-Pacific and beyond.

Bruce Liu, Partner; Martin Slusarczyk, Director, Zurich; Selene Peng, Senior Consultant, Shanghai; and Joki Wallace, Consultant, New York; All with Simon-Kucher & Partners’ life sciences division

Download Issue PDF
Articles in this issue

Pharmaceutical Executive: February 2025 Issue (PDF)
Pharmaceutical Executive: February 2025 Issue (PDF)
At First Glance
At First Glance
2025 Pipeline Report: The Edge of Greatness?
2025 Pipeline Report: The Edge of Greatness?
Inclusive Marketing: Engaging with Purpose
Inclusive Marketing: Engaging with Purpose
Proactive Engagement: How AI-Driven Alerts are Transforming HCP Outreach
Proactive Engagement: How AI-Driven Alerts are Transforming HCP Outreach
The Shifting Pharmacy Landscape in 2025
The Shifting Pharmacy Landscape in 2025
Navigating the EU’s Joint Clinical Assessment
Navigating the EU’s Joint Clinical Assessment
Biopharma Business Check: Financing Review and Outlook
Biopharma Business Check: Financing Review and Outlook
Statistically and Clinically Significant Paths to Value Proposition
Statistically and Clinically Significant Paths to Value Proposition
AI: Hungry for Power
AI: Hungry for Power
Navigating Cross-Border Pharma Deals: Key Trends and Lessons Out of China
Navigating Cross-Border Pharma Deals: Key Trends and Lessons Out of China
The Teva Turnaround: Steering a Company Comeback
The Teva Turnaround: Steering a Company Comeback

Newsletter

Lead with insight with the Pharmaceutical Executive newsletter, featuring strategic analysis, leadership trends, and market intelligence for biopharma decision-makers.

Subscribe Now!
Related Videos
Arda Ural
Lynlee Brown
Arda Ural
Matthew Yelovich, Cleary Gottlieb, Theranos Case
Marcel Botha, 10XBeta
Jennifer Kyle, Condor
Kimberley Chiang, CoverMyMeds
Related Content
Advertisement
Merck to Cut 6,000 Jobs as It Aims for $3 Billion in Cost Savings by 2027
August 1st 2025

Merck to Cut 6,000 Jobs as It Aims for $3 Billion in Cost Savings by 2027

Don Tracy, Associate Editor
Facing patent expiration for its blockbuster Keytruda, Merck aims to streamline operations with significant job cuts and continued R&D investments.
Credit: zimmytws | stock.adobe.com. Balancing profitability with affordability, redesigning supply chains for resilience, and engaging actively in trade policy discussions are no longer optional, they are strategic imperatives.
August 1st 2025

How Can Pharma Leadership Prepare for the Current Tariff Environment and Potential Changes in 2026?

Thani Jambulingam, PhD
The 15% tariff on pharmaceutical imports from the European Union is not a short term inconvenience, it represents a structural shift in the economics of the US pharmaceutical market.
Moderna to Reduce Workforce by 10% Amid Cost Restructuring
August 1st 2025

Moderna to Reduce Workforce by 10% Amid Cost Restructuring

Don Tracy, Associate Editor
Biotech firm aims to streamline operations and reinvest in high-growth areas such as oncology and rare diseases as it targets $1.5 billion in savings by 2027.
President Donald Trump
August 1st 2025

President Trump Issues Letters to 17 Major Pharma Companies Demanding Action on Most-Favored-Nation Order

Mike Hollan
The letter states that the companies have 60 days to meet the President's requirements.
Bausch Health Acquires DURECT Corporation in Deal Worth up to $413 Million
August 1st 2025

Bausch Health Acquires DURECT Corporation in Deal Worth up to $413 Million

Don Tracy, Associate Editor
The transaction brings larsucosterol, an investigational treatment for alcoholic hepatitis, under Bausch Health’s portfolio as the company advances its liver disease research and development efforts.
Bristol Myers Squibb Spins Out Immunology Assets into New Company Backed by Bain Capital
August 1st 2025

Bristol Myers Squibb Spins Out Immunology Assets into New Company Backed by Bain Capital

Don Tracy, Associate Editor
The newly formed biotech launches with five promising autoimmune candidates, $300 million in funding, and leadership from industry veterans.
Related Content
Advertisement
Merck to Cut 6,000 Jobs as It Aims for $3 Billion in Cost Savings by 2027
August 1st 2025

Merck to Cut 6,000 Jobs as It Aims for $3 Billion in Cost Savings by 2027

Don Tracy, Associate Editor
Facing patent expiration for its blockbuster Keytruda, Merck aims to streamline operations with significant job cuts and continued R&D investments.
Credit: zimmytws | stock.adobe.com. Balancing profitability with affordability, redesigning supply chains for resilience, and engaging actively in trade policy discussions are no longer optional, they are strategic imperatives.
August 1st 2025

How Can Pharma Leadership Prepare for the Current Tariff Environment and Potential Changes in 2026?

Thani Jambulingam, PhD
The 15% tariff on pharmaceutical imports from the European Union is not a short term inconvenience, it represents a structural shift in the economics of the US pharmaceutical market.
Moderna to Reduce Workforce by 10% Amid Cost Restructuring
August 1st 2025

Moderna to Reduce Workforce by 10% Amid Cost Restructuring

Don Tracy, Associate Editor
Biotech firm aims to streamline operations and reinvest in high-growth areas such as oncology and rare diseases as it targets $1.5 billion in savings by 2027.
President Donald Trump
August 1st 2025

President Trump Issues Letters to 17 Major Pharma Companies Demanding Action on Most-Favored-Nation Order

Mike Hollan
The letter states that the companies have 60 days to meet the President's requirements.
Bausch Health Acquires DURECT Corporation in Deal Worth up to $413 Million
August 1st 2025

Bausch Health Acquires DURECT Corporation in Deal Worth up to $413 Million

Don Tracy, Associate Editor
The transaction brings larsucosterol, an investigational treatment for alcoholic hepatitis, under Bausch Health’s portfolio as the company advances its liver disease research and development efforts.
Bristol Myers Squibb Spins Out Immunology Assets into New Company Backed by Bain Capital
August 1st 2025

Bristol Myers Squibb Spins Out Immunology Assets into New Company Backed by Bain Capital

Don Tracy, Associate Editor
The newly formed biotech launches with five promising autoimmune candidates, $300 million in funding, and leadership from industry veterans.
About
Advertise
Contact Us
Editorial Board
Editorial Submission Guidelines
Do Not Sell My Personal Information
Privacy Policy
Terms and Conditions
Contact Info

2 Commerce Drive
Cranbury, NJ 08512

609-716-7777

© 2025 MJH Life Sciences

All rights reserved.