The ferocity of China’s biopharmaceutical investment boom this year – fuelled by record-breaking licensing of commercial rights to global giants after a three-year slump – may have surprised casual observers.

In December 2022, US drug maker MSD agreed to license global (excluding China) rights to develop and commercialise seven preclinical antibody-drug conjugate (ADC) cancer candidates from Sichuan Kelun-Biotech Biopharmaceutical, paying US$175 million upfront and up to US$9.3 billion in milestone payments.

“The Kelun – MSD deal was a significant milestone,” said Chen, who heads the Shanghai-based biopharmaceutical and life sciences practice L.E.K. Consulting. “There was a leap of faith for MSD to take a chance on Kelun – and for Kelun to make the investments.”

Eight months later, private-equity-backed Aiolos licensed global rights for an asthma treatment from Jiangsu Hengrui Pharmaceuticals for an undisclosed sum.