Western drug makers are increasingly looking to Chinese biotechnology companies specializing in artificial intelligence to discover new medicines. A number of new multi-billion-dollar deals are a testament to China’s emerging status as a hub for cutting-edge medicines.
In June, AstraZeneca paid more than $5 billion to CSPC Pharmaceutical Group to license its AI platform and preclinical cancer medicines – one of the largest AI biotech deals on record. Pfizer later broadened its partnership with XtalPi, which is also partnering with Eli Lilly and DoveTree in deals worth over $10 billion. Sanofi, a French drugmaker, recently made a $1.7 billion acquisition of AI-discovered antibody candidates from Earendil Labs, the U.S. subsidiary of Beijing-based Helixon.
These transactions capture China’s swift evolution over the last 5-7 years from mostly a commodity drug manufacturer to a global center for advanced drug development. According to Jeffries, Chinese companies represented 32% of worldwide biotech license deal value in Q1 2025, an increase from 21% in 2023 and 2024. China’s state financial backing, enormous patient data sets, and surplus talent pool are the major drivers.
As U.S. pharma drug makers approach patent expirations and increasing R&D expenses, alliances with Chinese companies provide them access to high-end AI platforms and lower licensing fees. China’s shift towards embracing AI, robotics, and high-scale biomedical data is making the country a world leader in AI-based drug discovery.
Written by: Ames Gross – President and Founder, Pacific Bridge Medical (PBM)
Mr. Gross founded PBM in 1988 and has helped hundreds of medical companies with regulatory and business development issues in Asia. He is recognized nationally and internationally as a leader in the Asian medical markets. Mr. Gross has a BA degree, Phi Beta Kappa, from the University of Pennsylvania and an MBA from Columbia University.