A Jefferies report highlights significant growth in licensing deals from Chinese biotech companies to multinational pharmaceutical firms, with China now accounting for 32% of outlicensing deal values in the first quarter of 2025, up from 21% in previous years. Factors driving this trend include governmental support, favorable regulatory environment, lower development costs, and credible data demonstrating first-in-class potential. The report notes the active involvement of major pharma, with oncology, autoimmune, and cardiovascular indications leading deal activity. China biotech innovations are increasingly viewed as strategic solutions to US pricing and patent expiration challenges.