Navigating Asia-Pacific Innovation Deal Opportunities

Though the United States and Europe remain the largest markets for biopharma R&D, APAC is emerging as a strong and dynamic player, with several new therapies reaching the review and regulatory approval phases for patients worldwide. This dynamism represents a significant opportunity for large pharmaceutical companies to partner with Chinese and other Asia-Pacific companies to bring new therapies to market.

Bristol Myers Squibb’s Senior VP of Strategy and Business Development, Konstantina Katcheves, joined Asia-Pacific biopharma executives Sang Hoon Lee (ABL Bio), Ji Li (AlfaMed), Debra Yu (LianBio), and Michael Choi (CStone Pharma) to identify opportunities for pan-Pacific partnering.

The enormous Chinese market offers a unique combination of clinical advantages and commercial opportunities. Whereas other APAC markets, such as the Republic of Korea, provide best-in-class R&D expertise, only China offers both the scientific expertise and sufficient local population for marketing therapies. Manufacturing drugs in China remains cost-competitive, and panelists noted that APAC deals often see biotechs retaining the right to manage the manufacture of partnered therapies locally.

Outside of China, deal structures vary. For example, up-front payments can be minimal in the Republic of Korea, and the government is a crucial partner for early-stage biotechs and laboratory innovations. Clinical trial collaborations can also be structured to take advantage of regional differences. The region's biotechs and mid-sized pharma companies have built expertise navigating regional regulatory variations, adding value for larger but less-experienced Western partners.

With the panel noting that APAC market caps have grown 100-fold in the last five years, it seems inevitable that partnerships in China and across the region will only continue to grow.