Core Takeaways

Scale-up: China's innovative-drug BD out-licensing in Q1 2026 surpassed USD 60 billion, nearly half of full-year 2025.

Record upfronts: Large deals closed rapidly; bispecifics, ADCs, and GLP-1 form the "three engines" of out-licensing.

Policy boost: Beijing's "New 32 Measures" and a 42% cut in priority review timelines have shaped a full-chain support system.

Technology breakthroughs: Chinese players are at the global frontier in ADCs, bispecifics, and T-cell engagers.

Strategic window: Global innovative-drug financing is rebounding; CXO sentiment is recovering.

1. BD Out-Licensing: A USD 60 Billion Opening as China's Innovative Drugs Go Global

In Q1 2026, China's innovative-drug out-licensing delivered a better-than-expected scorecard.

According to NMPA data and PharmCube, Q1 2026 out-licensing deal value exceeded USD 60 billion (about RMB 420 billion).

This figure approaches half of the full-year 2025 total of USD 135.7 billion and set a new first-quarter record.

For the first time, China overtook the United States as the world's top country by number of innovative drugs in development.

2. Policy Catalyst: "New 32 Measures" and Healthcare Reform — A Golden Window

On April 13, ten Beijing municipal departments including the Healthcare Security Administration jointly released the "Several Measures to Support High-Quality Development of Innovative Pharmaceuticals in Beijing (2026)" — the "New 32 Measures."

This is the third consecutive year Beijing has issued a dedicated policy package to support innovative pharmaceuticals.

This year's policy emphasizes first-in-class innovation, spotlighting AI prediction and brain-computer interfaces, and connects the entire R&D-review-production-application chain.

Key highlights of the "New 32 Measures":

Average clinical-trial review time was cut 71% versus the 13th Five-Year Plan period (from 175 to 50 working days).

Average priority-review time shortened 42% (from 246 to 143 working days).

Support first-in-class innovation in AI prediction and brain-computer interfaces.

Optimize pricing mechanisms for innovative-drug launches and back high-quality NMEs.

Accelerate hospital adoption of innovative devices such as surgical robots.

3. Technology Frontier: ADCs, Bispecifics and TCEs Lead, with Chinese Players Rising

At the ongoing AACR 2026 Annual Meeting in San Diego, Chinese companies were among the most prominent players.

This year, Chinese companies focused on ADCs, bispecific/multispecific antibodies, and T-cell engagers (TCEs).

Several programs have moved beyond preclinical proof of concept and are generating clinically meaningful data.

4. Industry Trends: CXO Recovery and an Upgrade in BD Collaboration

As global innovative-drug financing improves, the domestic CXO sector is rebounding.

Data show global VC and PE investment in innovative drugs has posted positive growth for two consecutive years after the 2022 trough.

Full-year 2025 investment grew 31% year on year.

Earlier collaboration: Multinationals are reshaping how they evaluate Chinese innovation, shifting from late-stage in-licensing to platform deals and early-stage anchoring.

Whole value chain benefits: From CDMOs and CROs to building blocks, multiple sub-segments see demand recovery and order growth.

Active capital markets: Hong Kong sees a biotech IPO boom; innovative-drug ETFs continue to see net inflows.

5. Zhihe Perspective: Embrace Opportunity, Stay Open

At the start of 2026, China's innovative-drug sector is making a historic leap from "follower" to "co-runner" and even "leader."

At Nanjing Zhihe, we focus on innovative-drug R&D services and continue to invest in BD2-selective BET inhibitors, deuterated drugs, and improved new drugs.

The current BD boom brings unprecedented strategic opportunities for innovative-drug developers.

We look forward to working with more partners:

Project collaboration: Share pipelines and share risk.

BD coordination: Jointly advance overseas rights out-licensing.

Technology enablement: End-to-end services from target discovery to IND filing.

The wave of Chinese innovative-drug globalization is here. Nanjing Zhihe stands ready to ride the wave with you toward a win-win future.

Disclaimer: For industry reference only; not investment advice.

Data sources: NMPA, PharmCube, PharmaGoGlobal, and public media.