Core Insights - The Chinese innovative drug industry is entering a global business development (BD) phase at an unprecedented speed, with over 70 pipeline licensing agreements signed in the first half of the year, totaling more than $60 billion, setting new records [1][2] - The surge in BD activities is driven by a precise match between supply and demand, as multinational companies face patent expirations and need external innovative pipelines, while Chinese biotech firms have a large number of early-stage projects but lack the resources to advance them independently [2][6] Industry Dynamics - The industry is characterized by two main development models: the "heavyweight approach" exemplified by companies like Heng Rui Pharma, which has a large R&D team and covers numerous hot targets, and the "lightweight approach" represented by companies like Abogen Biosciences, which focuses on efficiency and cost advantages [3][5] - Heng Rui Pharma ranks 13th globally with 173 projects in the pipeline and has generated nearly 2 billion RMB in upfront payments from BD transactions in the first half of the year [3] - Abogen Biosciences has signed approximately 280 antibody asset collaborations in the first half of 2025, leveraging its RenMice platform to create a vast resource library of candidate antibodies [3][4] BD-Driven Industry Restructuring - The BD model is reshaping the industry by enhancing molecular development efficiency and changing collaboration methods, allowing previously unsuccessful molecules to re-enter the pipeline for new indications [4] - This open platform is becoming a foundational infrastructure for the innovative drug industry, enabling biotech companies to rely on resource libraries for early-stage development while large pharmaceutical companies use it to supplement and accelerate their internal R&D [4] Future Outlook - The BD model is redefining industry value assessment, shifting capital market focus from solely independent R&D to the ability to continuously produce pipelines with licensing potential [5][6] - With ongoing patent cliffs for global pharmaceutical giants and the accumulation of R&D resources by Chinese companies, the wave of Chinese innovative drugs entering the global market is expected to remain strong, becoming a core driver of industry development over the next two decades [6]