China-based biotech companies’ overseas drug-licensing deals reached $139.4 billion through October 8, 2026, exceeding the previous full-year record of $138.8 billion. Deal terms are also growing more sophisticated, including upfront payments, milestones and equity stakes.
China-based drugmakers struck overseas licensing agreements worth $139.4 billion through October 8, 2026, according to PharmCube data cited in the article. The total surpassed the $138.8 billion recorded for all of last year. Upfront payments reached $8 billion in the first three quarters, up from $7.2 billion for all of 2025.
The average agreement this year is worth nearly $700 million, more than 10 times the 2018 figure, although milestone payments inflate totals because they depend on clinical and commercial targets. Average upfront payments have also increased, and Chinese sellers are negotiating more sophisticated terms.
Jiangsu Hengrui licensed three GLP-1 weight-loss drugs to Hercules, a newly formed US entity backed by Bain Capital, negotiating nearly $6 billion in upfront and milestone payments and a 20% stake. Renamed Kailera Therapeutics, the company listed in New York in April and has a $1.4 billion market capitalisation. The article says other Chinese drugmakers are adopting similar deal structures, while future growth depends in part on governments’ views of national security risks.
