U.S. Pharma Giants Rapidly Acquire Chinese Drug Candidates Amid Security Concerns

U.S. pharmaceutical companies are rapidly acquiring Chinese drug candidates to fill revenue gaps caused by patent expirations. As competition intensifies for securing pipelines, particularly for cancer treatments, what was once viewed as a technology exchange is now sparking security debates within the United States.

On June 1, the Financial Times reported that U.S. lawmakers and investors are beginning to see the growing dependence on Chinese biotech as a security risk. The report highlighted Pfizer's recent agreement with China's Innovent Biologics for a cancer drug development deal worth up to $10.5 billion.

According to Reuters, the contract involves 12 early-stage cancer drug candidates. Pfizer will pay Innovent an upfront fee of $650 million, with the remaining payments tied to milestones in development, approval, and commercialization.

The push by major U.S. pharmaceutical firms to seek Chinese drug assets is driven by looming patent expirations. Reuters noted that U.S. companies could face a revenue gap of up to $200 billion around 2030. Chinese biotech firms are rapidly expanding their pipeline of next-generation therapies, including antibody-drug conjugates (ADCs) and multi-specific antibodies, making them attractive targets for global firms.

The scale of these transactions has also increased. Citing data from PharmCube, Reuters reported that the value of overseas technology transfer agreements from Chinese biotech firms reached $137.7 billion in 2025, nearly ten times the amount in 2021. U.S. companies have also seen a surge in transactions with China, with 14 technology transfer agreements in the first half of 2025, valued at up to $18.3 billion, compared to just two agreements during the same period the previous year.

However, this trend is evolving beyond cost-saving measures and drug development strategies into a security debate. The Financial Times noted concerns among U.S. lawmakers that reliance on Chinese biotech could pose strategic vulnerabilities similar to dependence on rare earth materials. John Moolenaar, chair of the U.S. House China Task Force, has reportedly urged the Treasury Department to include biotech in the list of sectors subject to investment restrictions. The U.S. International Trade Commission (ITC) is also examining the impact of Chinese government support for related industries on U.S. companies.

Nonetheless, there are arguments that increased regulation could delay drug development. While limiting access to Chinese drug candidates may protect U.S. biotech firms, it could also hinder the strengthening of pipelines for major pharmaceutical companies.

* This article has been translated by AI.

AJP