Analysis indicates that Chinese biotech companies face challenges in their financing prospects through out-licensing, as multinational pharmaceutical companies plan to tighten their transaction budgets.
Analysts say that while record cross-border deals helped some loss-making Chinese biotech companies turn profitable in the first half of this year, multinational pharmaceutical companies are signaling plans to tighten their deal budgets. Deals with global partners have replaced initial public offerings (IPOs) and pre-IPO financing as the primary option for Chinese biotech companies to raise capital to advance new drug research and development, clinical development, and regulatory approvals.
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