Hengrui Pharma(SH:600276) Zhong Guo Zheng Quan Bao·2025-06-27 20:54Core Insights - The domestic innovative drug industry is experiencing a surge in overseas licensing agreements, with companies like Maiwei Biotech and others securing international collaborations, driven by supportive policies and the impending patent cliff faced by multinational corporations [1][2][3] Group 1: Overseas Licensing Agreements - Maiwei Biotech signed an exclusive licensing agreement with CALICO for IL-11 targeted therapy, receiving an upfront payment of $25 million and potential milestone payments up to $571 million, along with tiered royalties based on net sales [1] - Other companies, such as 3SBio and CSPC Pharmaceutical Group, have also entered significant overseas licensing deals, with 3SBio receiving an upfront payment of $1.25 billion from Pfizer for a PD-1/VEGF dual antibody, marking a record for domestic innovative drugs [2] - CSPC is in discussions for potential transactions that could yield up to $5 billion in total payments for several products, indicating a robust interest in Chinese innovative drugs from global partners [2] Group 2: Market Dynamics and Growth - The upcoming patent cliff is expected to result in over $300 billion in revenue losses for overseas pharmaceutical companies, prompting them to seek innovative drug assets globally [3] - China's innovative drug overseas licensing transactions are projected to grow by 26% in 2024, with upfront payments exceeding $2.5 billion in the first half of 2025, contributing to a total transaction value of over $50 billion [3] - The rapid growth in overseas licensing is providing substantial cash flow for innovative drug companies, enhancing their core pipelines and accelerating the development of Chinese innovative drugs [3] Group 3: Regulatory Support and Industry Development - The National Medical Products Administration (NMPA) has approved several innovative drugs, including a new class 1 innovative drug from Innovent Biologics, indicating a supportive regulatory environment [4] - The implementation of policies aimed at optimizing clinical trial review processes is expected to shorten the drug development cycle, benefiting the innovative drug industry [6][7] - Local governments, such as Beijing and Shenzhen, are introducing measures to support the pharmaceutical industry, including financial incentives for successful clinical trials and market entry [7] Group 4: Financial Performance and Market Position - Some biotech companies have achieved profitability, with Bai Li Tian Heng reporting a revenue of 5.823 billion yuan in 2024, a 936.31% increase, primarily due to an $800 million upfront payment from a global partner [5] - The market size of domestic innovative drugs has grown from 25.7 billion yuan in 2015 to 71.6 billion yuan in 2024, increasing its market share from 18.7% to 27.8% [5] - As of May 2025, China has become the largest country for innovative drug research and development, with 3,258 projects in progress, surpassing the United States [5][6]