Major drugmakers turn to China for licensing deals
NVS•Abogen signed a licensing deal with Novartis worth up to $7.8 billion to develop an experimental RNA-based therapy, with $575 million upfront. The deal is the latest in a wave of partnerships between China’s biotech sector and global drugmakers.
1. Recent licensing deals
The Novartis-Abogen agreement, announced on Friday, covers ABO2203, an experimental RNA-based therapy for autoimmune conditions. Novartis will pay $575 million upfront, with potential deal value of up to $7.8 billion.
2. Other partnerships
The listed deals include September 2026 agreements such as Novo Nordisk’s $300 million upfront licensing deal with Jiangsu Hengrui, worth up to $2.6 billion, and Pfizer’s May 2026 agreement with Innovent Biologics, with $650 million upfront and potential value of up to $10.5 billion.
3. Licensing model
Chinese biotechs often retain domestic rights and license their drugs overseas in exchange for upfront and milestone payments, as well as royalties.
