Chinese Biotech’s Mega Drug-licensing Deals with Multinationals Surge on Cost Savings

MoFo partners Chuan Sun and Derik Rao were recently interviewed by South China Morning Post for an article titled "Chinese biotech’s mega drug-licensing deals with multinationals surge on cost savings."

Chuan was quoted on the increasing use of the “newco structure” in these deals, which combines intellectual property licensing with fundraising through newly established corporate vehicles. He highlighted the significant volume of such deals, noting at least seven completed last year and five already identified this year, with more under discussion.

The article also emphasized a broader trend: Chinese biotech firms licensing intellectual property as an alternative to raising funds through share sales. Chuan noted that both the number and value of deals this year have already exceeded last year’s figures.

Derik provided insights into the risks associated with these deals, including the challenges of maintaining intellectual property integrity and the potential complexities of navigating multinational partnerships.

Read the full article.