New Drug Pricing Policy Empowers Innovation; Overseas Licensing Accelerates Dual-Drive Mechanism for the Industry

Recently, the General Office of the State Council issued "Several Opinions on Improving the Drug Price Formation Mechanism," providing top-level design support for pharmaceutical innovation. At the same time, overseas licensing of domestic innovative drugs continues to flourish across multiple fronts. Recently, Haisco signed an exclusive licensing agreement with U.S.-based AbbVie, with a total transaction value reaching up to $745 million.

Since the start of 2026, several domestic pharmaceutical companies, including Shiyao Group and Innovent Biologics, have successively entered into overseas licensing collaborations with multinational giants. Deal volumes are surging, and transaction amounts continue to climb.

Industry experts believe that peak sales expectations for domestic innovative drugs will be significantly boosted, greatly stimulating corporate enthusiasm. The entire industry is evolving from a previously overseas-driven model to a dual-drive system encompassing both domestic and international markets, further enhancing sector confidence and predictability. On one hand, this will optimize profit margins across all stages of the domestically-oriented innovative drug supply chain. On the other hand, it will further stimulate domestic R&D demand for innovative drugs. (China Securities Journal)