Bristol Myers Squibb partners with China for new drug development

• Bristol will send four experimental drugs to China for Hengrui to conduct early-stage trials, a departure from the typical model of U.S. companies only licensing drugs discovered in China
• Over half of large pharmaceutical companies' licensing deals have come from China in 2026 so far, up from 39% in 2025 and just 5% in 2022
• Early-stage drug development in China can study twice as many drugs in half the time at one-third the cost compared to the U.S., according to TCGX founder Chen Yu

Summary: Bristol Myers Squibb Partners with China for New Drug Development

Key Development:

Bristol Myers Squibb announced a potential multi-billion dollar partnership with Hengrui Pharma, one of China's leading drugmakers, marking a significant shift in cross-continent pharmaceutical collaboration.

Deal Structure:

• The companies will jointly develop approximately a dozen drugs
• Bristol will send four of its experimental drugs to China for early-stage clinical trials conducted by Hengrui
• Both companies will collaborate on discovering new drugs together

Market Significance:

This partnership represents a more reciprocal approach than previous U.S.-China pharma deals. Unlike earlier agreements that primarily involved licensing drugs out of China, Bristol is sending compounds to China for development—acknowledging faster, more cost-effective testing capabilities. Industry experts note China can study twice as many drugs in half the time at one-third the cost compared to the U.S.

Industry Trend:

Chinese partnerships are accelerating across the sector. Over 50% of large pharmaceutical companies' licensing deals originated from China in 2024, up from 39% in 2023 and just 5% in 2022, according to DealForma data. Major players including Amgen, AstraZeneca, and Eli Lilly have established similar collaborations.

Strategic Implications:

Industry analysts suggest China is evolving from a source of individual molecules into an integral part of global pharma R&D infrastructure. Some experts predict early-stage drug discovery may increasingly shift to China, similar to manufacturing trends, while mid- and late-stage FDA trials remain U.S.-based.

Outlook:

The partnership signals China's permanent role as a pharmaceutical powerhouse, though debate continues whether this benefits the industry through efficiency or threatens U.S. competitive positioning.