China’s biotech sector is staging a strong comeback in 2025, driven by a surge in licensing deals, improving fundamentals, and revived investor interest, even as U.S. biotech struggles with political headwinds and regulatory setbacks. Data from DealForma shows Chinese companies now account for 42% of $50M+ licensing deals, highlighting China’s growing role in global biopharma innovation. Read the article here

Despite the XBI’s 27% drop since Trump’s election and widespread market uncertainty, Q1 2025 biotech dealmaking and venture funding showed surprising underlying stability, particularly in licensing, M&A, and Phase 2 asset deals. Data from DealForma highlights the rapid rise of Chinese biotechs, now accounting for 42% of major licensing deals, while Big Pharma continues to prioritize mid-stage assets. Read the article here

Kailera Therapeutics fast-tracked its entry into the obesity drug market by licensing four clinical-stage therapies from China’s Hengrui, reflecting a broader shift as U.S. firms tap China’s growing pharmaceutical innovation. With $400 million in backing and a leadership team built for speed, Kailera aims to outpace competitors by launching a best-in-class injectable and oral GLP-1 pipeline in the high-growth global weight-loss market. Read the article here

The biotech market faced continued pressure last week amid broader macroeconomic and political uncertainty, with investor sentiment remaining weak and capital markets activity slowing. Data, in part from DealForma, highlights ongoing M&A dynamics and a significant surge in licensing deals from Chinese biotechs. Read the article here

Investor interest in gene therapy has declined sharply, with venture funding dropping and some companies like Pfizer pulling back, as attention shifts to higher-growth areas like obesity and cancer. Data from DealForma highlights the steep funding drop, while industry experts point to manufacturing challenges, high costs, and evolving regulatory needs as barriers that must be overcome for a rebound. Read the article here

After years of retreat, Big Pharma is re-entering the mental health space, with major moves like Bristol Myers Squibb’s $14 billion acquisition of Karuna Therapeutics and Johnson & Johnson’s $15 billion purchase of Intra-Cellular Therapies. This renewed focus is driven by scientific advances and the urgent need for better treatments for conditions like schizophrenia and bipolar disorder. Read the article here

This episode of Odd Lots explores the rapid rise of China’s biotech sector, where Chinese firms now account for 31% of molecules licensed to big pharma, up from 0% in 2019. Stifel’s Tim Opler discusses how returning scientists, lower clinical trial costs, and broader shifts in the pharmaceutical industry have fueled this growth, while also touching on AI’s potential impact on drug discovery. Read the article here

Oncology dealmaking fell sharply in 2024, with total cancer-focused licensing and M&A activity dropping about 50% from 2023. The article includes data in part from DealForma, highlighting a shift toward broader tumor-type therapies and popular modalities like ADCs, radioligand therapies, and multi-specific antibodies. Read the article here

U.S. biopharma companies are increasingly licensing innovative drug candidates from Chinese firms, fueled by China’s biotech advancements, lower costs, and a surge in available assets, with DealForma data highlighting the trend. This growing shift is reshaping the global biopharma landscape, creating both opportunities for efficiency and concerns about the future of U.S. biotech startups. Read the article here

David Wainer at The Wall Street Journal reports on the recent trend of Chinese biotechs developing drugs faster and cheaper than their U.S. counterparts and global pharma sourcing close to 30% of their large deals from here. DealForma and Tim Opler at Stifel provided the data and context. Check out the article here.

John Carroll presents the biopharma deals and funding numbers for 2024. Some charts are bullish — especially deal numbers and VC cash. DealForma is always happy to provide the data and charts for ample review of biopharma dealmaking going into the new year. Check out the article here.

Last week, the biotech market experienced extreme volatility, driven by sharp policy reversals on tariffs, aggressive trading behavior, and increasing concerns about the sector’s viability, though some signs point to potential recovery later in 2025. Data, in part from DealForma, highlights M&A activity by private equity firms alongside broader market trends. Read the article here