Investment Rating - The report indicates a positive outlook for China's biopharma sector, highlighting its transition into a more mature phase characterized by self-sufficiency and innovation [3]. Core Insights - China's biopharma sector is increasingly self-sufficient, supported by domestic funding and innovation, leading to a competitive edge in early-stage asset generation [3]. - The outlicensing market in China is expected to remain active, expanding into new therapeutic areas beyond oncology [3]. - Despite a pullback from non-domestic venture capital, domestic funding is reinforcing a self-reliant ecosystem in China's biopharma landscape [3]. - The report emphasizes that US restrictions may disrupt US biopharma innovation more than they will slow China's progress [3]. Summary by Sections Internal Dynamics of China's Biopharma Landscape - China's biopharma ecosystem is evolving from a generics powerhouse to a leader in next-generation therapeutics, supported by efficient clinical-trial infrastructure [5]. - The number of Investigational New Drug (IND) applications for innovative drugs increased significantly from 688 in 2019 to 2,298 in 2023 [5]. - China has adopted international standards for clinical trials, allowing companies to save 12 to 18 months in trial initiation compared to the US [5]. Global Engagement with China: Cross-Border Trends - China's licensing activity has increased, with a focus on complex biologics rather than legacy modalities [48]. - In 2025, antibodies and antibody-drug conjugates (ADCs) were the most licensed modalities, with significant deal values indicating their strategic importance [50][52]. - The report notes a trend of US and EU biopharma companies establishing centers of excellence in China to leverage local innovation [56][59]. Looking Ahead to 2026: Risks, Opportunities, and Geopolitical Trajectories - The BIOSECURE Act may introduce friction in cross-border collaborations but is primarily focused on downstream execution rather than early-stage asset generation [74]. - Despite potential disruptions, the demand for early-stage assets is expected to remain strong, particularly in precision oncology and cell and gene therapy [71][73]. - The report suggests that China's early-stage asset advantage is likely to persist due to rising US costs and funding constraints [74].

Core Viewpoint - Apollomics Inc. has entered into a partnership with LaunXP International Co., Ltd. for the development and commercialization of vebreltinib, a c-Met inhibitor, in combination with an EGFR inhibitor for the treatment of non-small cell lung cancer (NSCLC) in Asia, excluding mainland China, Hong Kong, and Macau [1][2][6] Company Overview - Apollomics Inc. is a late-stage clinical biopharmaceutical company focused on developing oncology drug candidates for difficult-to-treat and treatment-resistant cancers [1][5] - LaunXP Biomedical Co., Ltd. is dedicated to developing innovative cancer therapies and has successfully licensed several drug technologies [7][8] Partnership Details - The agreement includes an upfront payment of $10 million to Apollomics, with potential regulatory and pre-commercial milestone payments up to $50 million, along with royalties on net product sales [2][6] - LaunXP will be primarily responsible for the development of vebreltinib in combination with an EGFR inhibitor for NSCLC in the designated territory [2][6] Product Information - Vebreltinib is a potent, small molecule, orally bioavailable, and highly selective c-MET inhibitor that targets the HGF/c-MET axis, which is crucial for tumor growth and resistance to therapies like osimertinib [3][5] - The drug has shown strong tumor inhibitory effects in various preclinical models, including human gastric, hepatic, pancreatic, and lung cancer xenografts [3] Clinical Development - Vebreltinib is currently under clinical investigation and is not approved for use in any regions outside of China, where it has received conditional approval for multiple indications [4][5] - The Phase 1/2 SPARTA global clinical trial is ongoing, assessing vebreltinib as a single-agent therapy and in combination with other novel therapies [4]