China biotech pushes abroad as domestic pricing tightens

The ground shifted under China’s drugmakers when volume-based procurement cut through list prices. Margins tightened, business models wobbled, and strategy decks were rewritten overnight. The domestic market still offers scale, but the old assumption that scale guaranteed profit no longer holds.

The industry’s response has been swift and increasingly outward. Chinese biotechs are racing to globalize their trials, list shares on investor-friendly exchanges, and ink cross-border partnerships that convert science into cash. The central question is simple. Can these external revenues and deal flows offset the squeeze at home?

China’s procurement and reimbursement reforms created a crucible that tests resilience. Price compression now appears baked into market access. That reality is pushing companies to prune portfolios, refocus resources on genuine innovation, and look for growth beyond China. The transition is uneven, but the direction is clear.