Our 2023 Biopharma China Report: Biopharma in China, a pivot to Europe

AGIO Capital

Our much anticipated 2023 Biopharma in China has been released.

China has emerged as an economic powerhouse, a fast-growing market, and a place where innovation has become increasingly part of the future. In the healthcare sector, China is now not only the second-largest market globally but also a mature market of strategic importance. Therefore, companies with global ambitions must define a China strategy, as it is a market that cannot be ignored anymore.
This report provides a practical tool kit for life sciences companies and investors on how to complete cross-border healthcare deals and investments with China-based investors and strategic partners. Not only does it provide an overview of the Chinese healthcare market, its unique development trajectory, dynamics, and future trends, but the report also highlights how Chinese biopharma and healthcare companies, in general, are evolving and increasingly shifting their focus toward Europe for co-investment and partnership deals.
The Chinese biotech and MedTech sector experienced its very first boom between 2016 till 2022 when the capital was readily available, talents flocked to China, and most of the biotech companies were set up, utilizing this unique momentum. For some years, Chinese investments in biotech surpassed that of the US, which clearly indicates how healthcare has become a key sector for China.
Since last year, however, the dynamics have changed, and the Chinese life sciences sector is entering its second cycle. As a result, many companies are repositioning themselves to prepare for the future. Albeit the Chinese healthcare sector is also suffering from the global downturn with all its consequences, the long-term perspectives remain very positive. Capital has not dried up and is still available, but investors have changed their investment focus.
Furthermore, given the geopolitical tensions between the US and China, Europe has become center stage as Chinese healthcare companies and investors increasingly realize that Europe is a powerhouse of innovation and world-class R&D. Our report might be particularly interesting for European life sciences funds as deals with Chinese partners can create significant value for their portfolio companies in a very big but, at the same time, still largely unknown market. At the same, there is an opportunity to attract Chinese investors into financing rounds, and co-investment. Important to understand here is that most Chinese healthcare funds often act as strategic investors, and often try to support the expansion of that foreign company into the Chinese market.
In this report, we also zoom in on what services, technologies, and assets the Chinese market needs, and as such, where the synergies lie for foreign companies. Although innovation in China is on the rise, there is still a significant gap in translational medicines and especially early innovation. This is an opportunity for foreign companies and investors. We also explain how foreign companies should develop a specific China angle to attract investors, and what is important in the dealmaking process.  

Our specialists in the field