Despite U.S.-China Regulations, Jacobio and Hope Medicine Expand Chinese Biotech Technology Exports
Capital flows are overpowering geopolitical concerns
Chinese biotech companies' overseas technology exports in the first half of 2026 reached 81 deals with a potential total value of USD 11 billion, equivalent to 80% of the 2025 annual volume. This is due to the immediate business pressure caused by global pharma companies' patent cliffs and a shortage of late-stage pipelines, which outweigh U.S. regulatory discussions on China. According to Evaluate, Chinese assets are expected to account for more than two-thirds of global transaction value in 2026, and the average upfront payment between Western and Chinese companies rose 230% from USD 52 million in 2022 to USD 172 million in early 2026. This indicates that Chinese pipelines are being re-evaluated as strategic assets with clinical validation and speed, not just low-cost acquisition targets.
Cost advantages and regulatory risks are both increasing
The average cost per patient in non-small cell lung cancer clinical trials is USD 165,000 in China and USD 296,000 in the U.S., a 44% difference in favor of China. Combined with a large patient base and fast enrollment speed, global pharma companies can test more clinical hypotheses with the same capital. Meanwhile, the U.S. Congress is discussing the Comprehensive Overseas Investment National Security Act (COINS Act), which would include biotech in overseas investment reviews, potentially prolonging due diligence and funding execution periods. Chinese companies are reducing their dependence on the U.S. single market by expanding partnerships in Europe, the Middle East, and Asia, diversifying manufacturing sources, and including multi-stage termination rights.
Jacobio has already entered the commercialization stage
Jacobio Pharmaceuticals Group (1167.HK)'s Airuikai (glecirasib) is an oral anti-cancer drug that covalently inhibits KRAS G12C mutant proteins. China's NMPA conditionally approved it for previously treated KRAS G12C-mutant non-small cell lung cancer on May 22, 2025, and partner Shanghai Allist Pharmaceuticals (688578.SS) paid RMB 50 million as a milestone payment. Global competitors include Amgen (AMGN)'s Lumakras (sotorasib) and Bristol Myers Squibb (BMY)'s Krazati (adagrasib), which received FDA accelerated approvals on May 28, 2021, and December 12, 2022, respectively. With the global non-small cell lung cancer treatment market valued at USD 43.7 billion in 2026, Jacobio's value will be determined not only by its China sales but also by its expansion into pancreatic and colorectal cancers and the international partnership potential of its next-generation pan-KRAS assets.
Hope Medicine is broadening its options with a Phase 2 asset
Hope Medicine's HMI-115 is an unbranded Prolactin Receptor (PRLR) antagonist monoclonal antibody, an asset acquired by Bayer (BAYN.DE) for global exclusive rights. It is in Phase 2 trials for androgenetic alopecia and endometriosis, and the FDA designated fast track status for moderate to severe pain associated with endometriosis on December 4, 2025. In the hair loss market, oral finasteride and topical minoxidil are standard treatments, and PRLR blockade offers a different mechanism from existing hormonal modulators. The androgenetic alopecia treatment market is valued at USD 3.4 billion in 2026, with late-stage clinical entry and long-term safety data being key variables in determining technology export value.
The 81 Chinese biotech technology export deals and potential total value of USD 11 billion in the first half of 2026 signal to capital markets that global pharma companies' pipeline replenishment demand is stronger than U.S.-China regulatory risks. In the short term, the average upfront payment of USD 172 million and 44% lower non-small cell lung cancer clinical costs in China compared to the U.S. enhance Chinese developers' negotiation power, while the COINS Act could extend deal closing periods and increase funding costs. From an R&D perspective, the approved and commercial-stage KRAS G12C inhibitor Airuikai competes with Lumakras and Krazati, and the Phase 2 PRLR antibody HMI-115 introduces a new mechanism to the USD 3.4 billion hair loss market dominated by finasteride and minoxidil. Mid- to long-term enterprise value will be differentiated by the extent of indication expansion in the USD 43.7 billion non-small cell lung cancer market, late-stage clinical reproducibility, and the diversification of rights and manufacturing networks outside the U.S.