US drugmakers seek licensing deals in China

• The Merck-SciBrunch deal is worth up to $2.13 billion in total potential value for the experimental cancer drug SPR2015
• Since late 2022, US drugmakers have committed over $5 billion in upfront payments to Chinese biotech firms, with total potential deal values exceeding $68 billion across 12 major licensing agreements
• The largest deals include Pfizer's $1.25 billion upfront payment to 3SBio (up to $6.05 billion total) and Bristol Myers Squibb's $600 million deal with Jiangsu Hengrui (up to $15.2 billion total)

Summary: US Drugmakers Pursue China Licensing Deals

US pharmaceutical companies are increasingly partnering with Chinese biotechnology firms to acquire global rights to experimental drugs, marking a significant trend in cross-border pharmaceutical development.

Latest Transaction

Merck agreed to pay SciBrunch Therapeutics $400 million upfront for global rights to SPR2015, an experimental cancer drug, with potential total value reaching $2.13 billion. This September 2026 deal represents the latest in an accelerating pattern of US-China pharmaceutical collaborations.

Key Deal Highlights (2022-2026)

Major transactions include:

• Pfizer-Innovent (May 2026): $650 million upfront for 12 early-stage oncology programs; potential value up to $10.5 billion
• Bristol Myers Squibb-Jiangsu Hengrui (May 2026): $600 million upfront for 13 programs across oncology, hematology, and immunology; potential value up to $15.2 billion
• Pfizer-3SBio (May 2025): Largest upfront payment at $1.25 billion for cancer drug SSGJ-707; total potential value $6.05 billion plus $100 million equity investment
• Bristol Myers Squibb-Sichuan Biokin/SystImmune (December 2023): $800 million upfront for antibody cancer drug; potential value $8.4 billion

Market Implications

The deals span multiple therapeutic areas, with oncology dominating, followed by obesity treatments (GLP-1/GIP drugs) and immunology. Chinese biotech firms are monetizing their R&D capabilities through upfront payments, milestone achievements, and royalties, while US pharmaceutical giants gain access to innovative drug pipelines at earlier development stages.

The trend demonstrates China's growing biotechnology capabilities and US companies' strategic interest in diversifying drug discovery sources beyond traditional Western markets.