In Q3, 34 privately held Chinese drugmakers secured financing. Of those, 30 disclosed a total funding of $449 million—the lowest amount since 2021.
For the first time, the metabolism and endocrinology sector surpassed oncology as the top choice for Chinese investors. Eight Chinese companies in this field raised $151 million, accounting for 34% of all funding and overtaking the nine oncology developers who secured $110 million.
No company surpassed the $100 million mark this quarter. Only three raised over $30 million, all in July. In September, biotech firm JHM Biopharma secured $28.1 million in a Series B+ round led by SDIC Unity Capital, the highest amount raised that month.
Zenas BioPharma, a U.S.-based biotech developing immunology-based therapies, raised $225 million in its Nasdaq initial public offering (IPO) in September. Zenas, which established a Shanghai office in 2021, two years after its founding, had received funding from prominent Chinese investors, including WuXi Healthcare Ventures, Quan Capital, and Pivotal Bioventure Partners. The company is currently conducting a Phase 3 trial of obexelimab for IgG4-related diseases and a Phase 1 trial of ZB001 in patients with thyroid eye disease.
In Q3, the China subsidiaries of two Japanese pharmaceutical companies were sold to Chinese firms. In July, Grand Pharmaceutical acquired the remaining 24.7% stake in Tianjin Tanabe Seiyaku for RMB 120 million, securing 100% ownership of the company. In September, Hong Kong-based Winhealth Pharma completed its acquisition of Kyowa Kirin (China) Pharmaceutical, gaining permanent commercialization and production rights for five of Kyowa Kirin’s original brand drugs in China.
Drug asset deals rebounded in Q3, with 34 deals amounting to $12 billion, a significant rise from 22 deals totaling $9.6 billion in Q2.
In-licensing deals in Q3 totaled $996 million across three agreements, marking a significant increase compared to Q1 and Q2.
Out-licensing deals grew in number, with 16 agreements in Q3, though the total value remained similar to Q2.
Notable drug approvals in China for September are listed below.
