How Biotech Companies Can Capture More Value From Cross-Border Deals

China’s biotech sector has become a major hub for drug innovation, attracting pharmaceutical companies looking to strengthen their global pipelines. As more Chinese assets move into global development, biotech leaders face critical decisions around when to pursue a deal, who to partner with and how to capture more value from their scientific innovation.

These questions took center stage at this year’s China Pharmaceutical Innovation Conference (CPIC). At the event, Jenkins Fung, head of North Asia ex Japan at SS&C Intralinks, joined leaders from Pfizer, DualityBio, Goodwin and TCG Crossover to examine the strategic choices shaping cross-border investment and business development — and how biopharma companies can position themselves to compete globally.

From licensing deals to broader strategic partnerships

Traditional licensing remains an important route to market for Chinese pharma assets, alongside a growing range of partnership and investment models. Panelists described a shift toward structures that combine assets, capabilities and capital over longer time horizons — including multi-asset collaborations, research and platform partnerships, co-development and co-commercialization agreements, spin-outs and strategic equity investments.

Pfizer’s recent collaboration with Innovent, for example, encompasses approximately 12 assets across antibody-drug conjugates and multi-specific antibodies. The agreement pairs Innovent’s early discovery and clinical development capabilities with Pfizer’s global development and commercialization infrastructure.

“Deal structures are becoming more flexible,” said a pharmaceutical search and evaluation executive. “We are also seeing a greater focus on long-term partnerships.”

That flexibility allows companies to structure agreements around the needs and maturity of an asset while leveraging complementary capabilities. As one biotech founder and CEO explained, selecting a partner ultimately comes down to “which deal structure can maximize the value of the asset.”

Chinese innovation continues to gain momentum

Advancements in regulation, trial execution and industry expertise are drawing investor attention and expanding the strategic options available to Chinese biotech companies.

“Chinese biopharma companies are already generating global-standard science and clinical data,” said the pharmaceutical search and evaluation executive.

Speed is another source of competitive strength. DualityBio and BioNTech reached an agreement just 42 days after their CEOs first met, with DualityBio retaining responsibility for selected clinical work. The arrangement demonstrates how a company’s ability to execute quickly and effectively can influence deal terms just as much as the quality of the asset itself.

“Partners value the asset, but they also value your speed and quality,” the executive added. “The structure should maximize the capabilities of both parties.”

Firms that can fund programs through later stages of development can approach pharmaceutical partners with stronger evidence and greater negotiating leverage, helping them retain more of the value they create. Investors, however, remain focused on the quality of the opportunity.

“We want something that is differentiated — best in class or, if not best in class, close and competitive,” said a life sciences investor.

Novel science wins capital

The pool of potential partners for Chinese biotech companies now extends well beyond large multinational pharmaceutical companies. Panelists reported growing activity from smaller and mid-sized biotech firms, specialist investors and strategic partners across North America, Europe and Asia.

This broader field of buyers and investors can increase competition for the most compelling Chinese assets, giving developers greater negotiating leverage. At the same time, the life sciences investor cautioned that companies developing similar drugs against the same biological target may risk competing away some of that value, as buyers can choose among competing programs. This can weaken each developer’s bargaining power and make favorable deal terms harder to secure.

Companies with novel science and a credible global development strategy will therefore be better positioned to convert innovation into lasting value.

Why deal readiness matters more than ever

As the range of potential transactions expands, deal preparation must begin well before negotiations. Early decisions about how a company and its assets are structured can determine which paths remain viable, and revisiting them under pressure can introduce delays, complexity and risk.

“Prepare early and carefully consider how you design your company or asset structure,” advised a life sciences legal professional. “Different types of transactions can require very different structures.”

Effective preparation includes clearly defined intellectual property ownership, an appropriate tax structure, sound governance and early alignment among shareholders. Experienced external advisors can help companies anticipate cross-border requirements and present an asset in a way that addresses the questions prospective partners are likely to ask.

Enabling secure collaboration in a growing ecosystem

Once a transaction begins, a company’s readiness is tested by how quickly and securely it can organize and share information. Cross-border deals bring together investors, pharmaceutical partners, lawyers, advisors and regulators across multiple jurisdictions — all of whom require access to highly sensitive clinical and corporate materials. Fung noted that advisors often spend valuable time restructuring poorly organized files and folders before substantive diligence can begin, potentially slowing a licensing agreement, listing or sale.

DealCentre AI™ and FundCentre AI^TM give life sciences companies the secure, organized environment needed to prepare for and execute these transactions. The platforms support complex life sciences transactions from early licensing discussions and fundraising to due diligence, initial public offering (IPO) preparation and mergers and acquisitions (M&A). Within a secure, permission-governed workspace, deal teams can collaborate across organizational and geographic boundaries while controlling information access.

Link, Intralinks’ proprietary AI assistant, allows users to ask questions in conversational language, find source-backed answers across diligence materials and simplify time-consuming data room management tasks. The platform also maintains an auditable record of document access and activity.

“The compliance archive preserves documents and tracks the full activity trail,” said Fung. “If questions arise later, the company has the information it needs to respond.”

Looking ahead

With China’s biopharma innovation attracting global capital and partners, the outlook for cross-border dealmaking remains strong. Capturing these opportunities, however, will require differentiated therapies, early preparation and a global mindset.

“Think globally from day one,” said the pharmaceutical search and evaluation executive.

Strong science will open the door, but the right structures, partners and collaboration tools will help companies convert those opportunities into lasting value.