On Jan. 1, the global biopharma industry's technology transaction amount topped 45 trillion won, hitting an all-time high. As competition to develop innovative new drugs intensifies among global big pharma, analysts said capital is quickly flowing into Chinese biotech.
According to BioWorld, published by global data analytics firm Clarivate on the 18th (local time), the total value of global bio transactions in January 2026 was tallied at $31.16 billion (about 45.275 trillion won). This is the highest January figure on record.
The number of transactions was 128, higher than last year's monthly average of 98, but low compared with January figures over the past eight years. As a result, large contracts appear to have been concentrated among a small number of corporations.
In particular, the tilt toward Chinese bio companies stood out. Of the top 10 large contracts, five were partnerships with Chinese corporations. Observers said the trend continues of global big pharma buying technology for drug candidates (pipelines) developed by Chinese biotech.
Notably, Remegen transferred technology for a bispecific antibody drug candidate to U.S.-based AbbVie for up to $5.6 billion (about 8.136 trillion won). CSPC in China also signed a collaboration deal with the U.K.'s AstraZeneca covering eight programs to develop next-generation obesity treatments, worth $4.7 billion (about 6.822 trillion won).
The growth of China's bio industry is also evident in indicators. According to the Korea Biotechnology Industry Organization, as of 2024, Chinese bio corporations had more than 1,250 approved innovative drugs, already surpassing Europe and approaching the United States (about 1,440). China's share of global corporation-led clinical trials also expanded from 9% in 2018 to about 20% in 2023.
The industry cites as drivers: ◇ manufacturing efficiency ◇ centralized hospital networks ◇ CDMO and genomic service infrastructure ◇ regulatory reforms since 2015 ◇ the National Reimbursement Drug List (NRDL) policy.
In a recent report, the Biotechnology Industry Organization said, "The growth of China's bio industry is thanks to the return of researchers educated overseas and to talent development programs," adding, "In practice, Chinese researchers who had been active abroad are joining startups and research institutions, contributing to new drug development and the promotion of innovation."
Local investments by global pharmaceutical companies are also on the rise. U.K.-based AstraZeneca and U.S.-based Merck (MSD) are directly investing in research and development (R&D) hubs and bio incubators in China, which is being seen as an example of international collaboration simultaneously accelerating China's ecosystem and global new drug development.
However, moves to keep China in check in the United States and Europe are also growing again. In December last year, the United States raised the level of regulation by passing the so-called Biosecure Act, citing national security concerns. The core is a ban on pharmaceutical and bio corporations receiving U.S. federal funds from cooperating with companies designated as "of concern." The industry says the U.S. posture of monitoring supply chains and data access has noticeably tightened.
The European Union (EU) is also raising the bar for research collaboration. In Horizon Europe, the EU's flagship research and innovation funding program, China's participation has been restricted. Horizon Europe is a large-scale research program investing about 93.5 billion euros (about 160 trillion won) from 2021 to 2027, succeeding Horizon 2020.
According to the journal Nature, starting this year, organizations headquartered in China or controlled by China are restricted from applying for project subsidies in sensitive technology fields such as artificial intelligence (AI), communications, health care, semiconductors, bio, and quantum. The European side is seen as worrying about the potential transfer of core technologies to China.
The U.S. and European governments have continually raised the issue of technology transfer with China. The United States has criticized China for securing intellectual property through theft of trade secrets and forced technology transfer, while the Chinese government has repeatedly denied this. Europe has also reported cases where research collaboration with institutions linked to the Chinese military became controversial.
Meanwhile, global bio mergers and acquisitions (M&A) in January totaled $12.21 billion (about 17.741 trillion won). The number of transactions was eight, fewer than last year's monthly average of 10. The largest transaction was MSD's acquisition of Cidara Therapeutics for $9.2 billion (about 13.351 trillion won) as part of a strategy to address the patent expiry of the immunotherapy Keytruda.
In Korea, technology exports by Alteogen and Sam Chun Dang Pharm drew attention. Alteogen signed a subcutaneous (SC) formulation development contract with Tesaro Inc., a subsidiary of GSK plc in the U.K., but the contract size of $285 million (about 414.1 billion won) was seen as falling somewhat short of market expectations. Sam Chun Dang Pharm signed a joint development agreement with Japan's Daiichi Sankyo for oral semaglutide.