US-China Biotech Deals Expected to Thrive Amid Softening US Stance

US-China biotech deals are expected to thrive because Washington is reportedly leaning away from sweeping restrictions, according to analysts, giving Chinese healthcare firms a major boost following Beijing’s ambitious five-year plan for the sector.

Out-licensing deals between China and the US would “ride on a high tide” in the favourable environment, said Nomura’s head of China healthcare research Jialin Zhang, in a research note on Sunday.

The US Treasury Department was drafting investment rules for American pharmaceutical firms that would preserve their ability to license most Chinese drugs, barring links to pathogens or weaponisable biotechnology, Reuters reported on Friday, citing unnamed sources.

That stance would represent a “substantially softer stance” than had been feared based on restrictions outlined in two US bills earlier this year, said Tony Ren, head of Asia Healthcare Research at Macquarie, in a note on Monday.