Global pharmaceutical giants are increasing investments in China's biotech sector, aiming to leverage innovation capabilities and form joint ventures for the global market, according to Global Health Summit speakers.
Chinese AI-driven drug-design firms are rapidly expanding their global presence through cross-border deals, with out-licensing agreements reaching US$75 billion in the first five months of 2026, despite increasing scrutiny from Washington on Chinese biotech companies. A deal between Metis TechBio and Boulevard Bio exemplifies this trend.
Latvian Prime Minister Andris Kulbergs plans to sever trade ties with Russia, though he admits exceptions will be necessary for certain industries like pharmaceuticals. His government was approved on May 8.
WuXi AppTec reported record Q1 revenue of 12.44 billion yuan (US$1.72 billion), up 28.81% year-on-year, beating market expectations of 10.78 billion yuan. Net profit rose nearly 27% to 4.65 billion yuan, exceeding forecasts of 3.9 billion yuan. The pharmaceutical contract manufacturer has a record order backlog of 59.77 billion yuan, up 23.6% from a year earlier.
China's volume-based procurement policy forces multinational drug companies to lower prices for public hospital purchases while allowing biotech firms to charge premium prices in the private market. The dual-track system benefits internet healthcare platforms and private healthcare providers like Alibaba Health, Yifeng and Hygeia, according to Citi research.
China's volume-based procurement policy, which mandates bulk drug purchases for public hospitals, is intensifying price competition for multinational pharmaceutical companies while creating more profitable channels for domestic biotech firms in the private market. Analysts note potential benefits for internet healthcare platforms, pharmacies, and private hospital services.
