Yafa Insights | 2022 China Pharmaceutical Licensing Transactions Report

As one of the main participants in global biopharmaceutical transactions, China has seen an explosion in pharmaceutical licensing transactions since 2017. After a significant market downturn in 2022, the value of biopharmaceutical assets became prominent. China Cross-Border Inbound Transactions · After several years of strong growth, China’s cross-border inbound transactions saw a sharp decline in 2022, with transaction volume down 53% year-on-year, reaching the lowest level in nearly five years. Investors sought safer and more 'affordable' assets. · Reason: Weak primary and secondary markets, insufficient cash reserves. China Outbound Transactions · The number of China’s outbound transactions steadily increased, and 2022 witnessed the largest global transaction: the ADC project deal between Kelun-Biotech and Merck. · Both 2021 and 2022 saw multiple large transactions, with overall transaction amounts significantly higher than in previous years. Downpayments over the two years totaled nearly $3 billion. China Domestic Transactions · The number of transactions and total downpayments fell by 35% and 61%, respectively.