Pharmaceutical Industry's China Partnerships Surge in 2025, Raising Geopolitical Concerns

In a landmark year for cross-border collaborations, global pharmaceutical companies have committed a staggering $48.5 billion to partnerships with Chinese biotechs in the first half of 2025, surpassing the entire 2024 total of $44.8 billion. This unprecedented surge in investment underscores the growing importance of Chinese innovation in the global pharmaceutical landscape, while simultaneously raising concerns about potential geopolitical implications.

Deal Volume and Value Soar to New Heights

According to an analysis conducted by IQVIA, the pharmaceutical industry has witnessed a remarkable acceleration in both the number and value of deals between multinational companies and Chinese firms. The first half of 2025 saw 61 agreements signed, with 16 deals exceeding $1 billion in value. If this trend continues, 2025 is poised to easily surpass the 100 agreements inked in 2024.

U.S.-based companies have been particularly active, representing 61% of the deals in the first half of 2025, a significant increase from 37% in 2024. The industry has also seen a shift towards heavily backloaded deals, with pharmaceutical companies waiting for assets to be de-risked before making substantial investments.

Strategic Focus on Oncology and Immunology

Oncology remains the primary focus of these partnerships, continuing a multi-year trend. Immunological and inflammatory diseases are also seeing increased attention from dealmakers. Notable transactions include Pfizer's agreement with 3SBio, which involved a $1.25 billion upfront payment and up to $4.8 billion in milestones for a Phase III-ready bispecific antibody targeting PD-1 and VEGF.

AstraZeneca has also been particularly active, signing multiple deals including a $4.68 billion agreement with Harbour BioMed for multi-specific antibodies in immunology and oncology.

Geopolitical Tensions and Industry Concerns

While the data suggests that cross-border partnerships will continue to thrive in the near future, geopolitical pressures loom large over the industry. Former FDA commissioner Scott Gottlieb has warned that the United States is at risk of losing its biomedical edge to China. In an article published in JAMA, Gottlieb cautioned, "If we fail to halt the drift of biomedical discovery toward China, we risk ceding a strategic technological advantage that may prove all but impossible to win back."

As the pharmaceutical industry continues to navigate this complex landscape of innovation and geopolitics, the balance between leveraging Chinese biotechnology advancements and maintaining strategic advantages will remain a critical challenge for global players in the years to come.