China's Jiangsu says it will support pharmaceutical firms' global M&A, licensing (updated)

Innovent Biologics

26/08/2026 11:58

Adds context, names of two Jiangsu-based drugmakers in paragraphs 5-7
SHANGHAI, Aug 26 (Reuters) - Chinese biotech hub Jiangsu province pledged to support pharmaceutical companies seeking foreign acquisitions, licensing agreements and joint development projects on Wednesday, as China tightens scrutiny over sensitive technologies.
Drug development from China-headquartered clinical trial sponsors has grown significantly over the past two decades: they ran 32% of all global clinical trials in 2025, up from just 2% in 2009, ​according to IQVIA, a health sector research firm.
Global drugmakers are stepping up their search for China‑developed experimental medicines as they cut costs ahead ​of patent expirations, with industry analysts predicting ​biotech licensing deals would surge to a fresh ⁠record this year.
Jiangsu will "support enterprises in participating in global trade and licensing cooperation", the provincial government said in a statement on its three-year plan for promoting development of the local biopharmaceutical industry.
The move could boost pharmaceutical companies that are developing new medicines and help bring potential treatments faster to the market for patients overseas.
Some leading Chinese drugmakers with global ambitions are struggling to recruit internationally experienced staff needed to develop and commercialise promising medicines overseas, Reuters reported earlier this year.
Jiangsu-based drugmakers which have struck overseas partnerships include oncology and metabolic disease specialists Jiangsu Hengrui Pharmaceuticals 600276.SS and Innovent Biologics 1801.HK.
In June, China issued sweeping new rules tightening control of overseas deals that involve Chinese investors, technology, data and national security, ​a month after Beijing ordered Meta to unwind its acquisition of AI startup Manus.

 (Reporting by Andrew Silver in Shanghai, additional reporting by Beijing Newsroom, Editing by Louise Heavens and Philippa Fletcher)
 ((andrew.silver@thomsonreuters.com))