Locust Walk analyzed the evolving landscape of China’s biotech out-licensing market and its impact on global dealmaking. As Chinese assets play an increasingly prominent role in international partnerships, understanding the key value drivers and negotiation dynamics is essential for both licensors and buyers. In this white paper, we explore the following critical insights:

1. Explosive Growth: China’s global partnership deals grew at a 67% 3-year CAGR and 111% 5-year CAGR through 2024.
2. Lower Upfronts: Chinese biotechs receive 1.8x lower upfronts than US peers, averaging $50M less per deal.
3. Cash Payout Gap: Upfronts make up 5.2% of total deal value vs. 9.9% in the US, translating to 1.9x lower immediate cash.
4. Cross-Border Complexities: Time zones, business culture, and deal structures add layers of inefficiency and risk.
5. Crowded Pipeline: Global buyers face 10+ companies per target, making asset selection and alliance management critical.

By examining these trends, Locust Walk aims to provide valuable insights into the shifting dynamics of Chinese biotech dealmaking. Whether a Chinese company seeking to optimize out-licensing strategies or a global buyer navigating an increasingly competitive market, understanding these nuances can be the key to securing successful partnerships.