The Path from Discovery to Global Commercialization

Earlier this year, Pharmaceutical Executive reported on China’s growing prominence in the pharma and biotech spaces. During this year, billions of dollars have been committed to licensing commitments with Chinese companies, with many US-based companies making up a significant percentage of those deals.

According to the report, these deals hit a record high in 2024 at about $51.9 billion, which was a 90% jump from 2023’s numbers. This number then increased again in 2025 and is expected to increase again by the end of 2026.

Pharmaceutical Executive spoke with K2 Therapeutics’ CEO Dr. Ying Huang about the growing shift towards globally sourced innovation and the increased focus on foreign partnerships. The push has become so strong that it’s even impacted how investors analyze pharma and biotech companies.

Pharmaceutical Executive: What is the current path from discovery to global commercialization?
Dr. Ying Huang: The process typically begins when a scientist at an academic institution identifies a novel biological target for a particular disease through basic research. From there, a biotech startup — often based in Boston or the San Francisco Bay Area — is funded by a venture capital firm and spends several years identifying a lead compound, optimizing it, and advancing it to what's called a Phase 1 drug candidate ready for human testing.

In Phase 1, only about 40% of candidates succeed and move forward into Phase 2, where the drug is tested in patients to reconfirm safety and begin assessing efficacy. Unfortunately, roughly half of drugs fail at the Phase 2 stage. Those that advance move into Phase 3 — the registration stage — where again only about 50 to 60% succeed. Phase 3 trials typically run in parallel across two studies, enrolling hundreds or sometimes thousands of patients depending on the indication.

If Phase 3 results are positive, the company submits a New Drug Application to the FDA, which reviews the data and, if satisfied, grants approval. From start to finish, the entire process typically takes eight to ten years.