As China rapidly advances in the field of biotechnology, more and more multinational pharmaceutical companies are seeking cooperation opportunities in China.
According to reports by media outlets such as the South China Morning Post and Reuters on May 29th, Chinese biopharmaceutical company Sinovation Biologics and global pharmaceutical giant Pfizer have signed a global cooperation agreement worth up to $10.5 billion. Both companies will collaborate to develop 12 innovative research projects aimed at detecting tumors at an early stage and addressing their root causes.
According to a statement from the Hong Kong Stock Exchange, Innovent Biologics will receive a down payment of $650 million from Pfizer. Additionally, Innovent Biologics is eligible for milestone payments totaling up to $9.85 billion for research, development, regulatory, and commercialization efforts. For each approved product, Innovent Biologics will receive sales royalties amounting to double-digit percentages.
According to reports, this collaboration involves a portfolio of tumor products consisting of 12 projects. These include 8 early-stage projects developed by Innovent Biotech, as well as 4 new projects proposed by Pfizer. Innovent Biotech will lead the Phase 1 clinical trials for all 12 projects, while Pfizer will be responsible for their global development efforts.
According to the agreement, Cinda and Pfizer will jointly develop four key projects worldwide. Both parties will share the development costs. They will also discuss their joint commercialization plans in the United States and Europe, and share profits. At the same time, Cinda retains its rights in the Greater China region.
There are also 4 additional projects. Xinda has granted Pfizer exclusive rights in regions outside of Greater China. Pfizer will bear most of the development costs. For the last 4 projects, Xinda has granted Pfizer exclusive global rights. Pfizer will be responsible for all global development costs.
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November 2025, Shanghai, The 8th China International Import Expo – Medical Devices and Healthcare Exhibition Area, American pharmaceutical company Pfizer. IC Photo
Yu Dechao, founder, chairman of the board, and CEO of Innovent Biologics, said in the announcement: The company believes this collaboration is another milestone towards achieving global capabilities. By leveraging the complementary resources of both parties, Innovent Biologics will be able to develop its early-stage tumor research and development pipeline more quickly and effectively, thereby bringing innovative therapies to patients worldwide.
He added, Joint development and commercialization of key projects in the United States and Europe has expanded Innovent Biologics global influence.
In October last year, Innovent Biologics reached a partnership with Takeda Pharmaceutical of Japan, with a total value of up to $11.4 billion. Under this agreement, Takeda was granted the right to develop and commercialize another cancer drug in regions outside of the Greater China region.
Global pharmaceutical companies are competing to utilize Chinas rapidly developing biotechnology research and development capabilities. Reuters reported that the collaboration between Sinovac and Pfizer coincides with a surge in foreign licensing deals in Chinas biopharmaceutical industry. Global pharmaceutical giants are intensifying their efforts to find locally developed drugs in China.
According to the industry database NextPharma, by 2025, the total value of transactions related to the licensing of innovative drugs in China to foreign companies reached $135.655 billion, making China the worlds leading country in this area. This figure represents a nearly 10-fold increase compared to 2021.
According to statistics from the National Medical Products Administration and relevant industry databases, in the first quarter of 2026, the total amount of foreign licensing transactions for innovative drugs in China exceeded $60 billion, which is nearly half of the total amount in 2025.
Analysts predict that such authorized transactions will reach record highs this year.
The South China Morning Post pointed out that this explosive growth is due to the support provided by the Chinese government. As Chinese drug regulatory agencies accelerate the approval process for clinical trials, innovative drugs developed locally can be brought to market more quickly.
In 2025, China approved 76 innovative drugs, setting a new record. Data released by the National Medical Products Administration show that as of May 21, since the beginning of the year, China has approved the marketing of 19 innovative drugs, among which 15 are domestically developed innovative drugs.
A report released by the Dutch international financial group ING on May 27 shows that China has surpassed Europe in terms of the proportion of new clinical trials launched in recent years. In terms of the number of new drugs approved globally, China is also narrowing the gap with the United States.
