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Western Pharma Poured Billions Into Chinese Biotech to Start 2026
Western pharma companies signed tens of billions of dollars in licensing deals with Chinese biotechs in the opening months of 2026, nearly matching all of 2024's total in a matter of weeks. AstraZeneca paid $1.2 billion upfront for CSPC's obesity programs (worth up to $18.5 billion total), while Eli Lilly inked its seventh collaboration with Innovent Biologics. Chinese assets now represent roughly a third of all out-licensing value, up significantly from just two years ago. The shopping spree continues despite the BIOSECURE Act and rising geopolitical tensions, because patent cliffs don't care about politics.
Why it matters: The surge signals a fundamental power shift in drug discovery. Chinese biotechs are no longer cheap manufacturers; they're becoming primary sources of novel drug candidates, and the window for Western pharma to lock up those assets at favorable prices is closing fast.
Read more →Deals and M&A
Gilead Announced $13 Billion in Deals in Six Weeks
Gilead announced its third deal since late February, agreeing to buy German ADC specialist Tubulis for $3.15 billion after announcing acquisitions of Arcellx ($7.8B) and Ouro Medicines ($1.675B). The Tubulis acquisition gives Gilead a next-gen platform for building more stable, less toxic cancer-targeting antibody-drug conjugates. Early data on Tubulis's lead drug showed a 59% response rate in ovarian cancer. Gilead is essentially rebuilding its identity from an HIV company into an oncology powerhouse.
Read more →Neurocrine Bets $2.9 Billion on a Rare Hunger Disorder
Neurocrine is acquiring Soleno Therapeutics at a 34% premium for the only approved drug treating hyperphagia in Prader-Willi syndrome. VYKAT XR pulled in $190 million in its first year on the market, with Q4 alone hitting $92 million. Patent protection stretches into the mid-2040s, giving Neurocrine nearly two decades before generic competition arrives.
Read more →Clinical and Regulatory
The GLP-1 Pill That Could Make Needles Obsolete
The FDA approved Eli Lilly's Foundayo (orforglipron), an oral GLP-1 pill for obesity you can take any time of day without fasting or needles. Patients on the highest dose lost 12.4% of body weight over 72 weeks. At $149 per month for self-pay through LillyDirect, Lilly is removing every friction point between patients and prescriptions. The approval came in just 50 days, the fastest for a new molecule since 2002.
Read more →FDA Rejects Replimune's Melanoma Virus Therapy for the Second Time
The FDA rejected Replimune's oncolytic virus therapy RP1 again, citing the same single-arm trial design flaws it flagged five years ago. Despite a 32.9% response rate and durable results, the lack of a comparison group meant regulators couldn't tell how much benefit came from RP1 versus the nivolumab it was paired with. Shares dropped roughly 20%.
Read more →Funding and IPOs
Biotech IPOs Hit $1.7 Billion in Q1, the Best Quarter Since 2021
Biotech raised $1.7 billion in IPOs during Q1 2026, with the median deal size more than doubling to $287.5 million. Only about six companies went public, but three cleared $300 million. Investors are being ruthlessly selective: if you don't have Phase 2 data and pharma backers, Wall Street isn't interested. The industry needs 20 or more IPOs this year to call it a genuinely good year.
Read more →Shanghai's Oricell Raises $110 Million Chasing CAR-T's White Whale
No CAR-T therapy has ever been approved for solid tumors, but Oricell's early liver cancer data is turning heads. In a 10-patient Phase 1 study, every patient on the highest dose saw their tumors shrink. The pre-IPO round, backed by Vivo Capital and Qiming Venture Partners, funds the company's push toward a public listing and pivotal trials.
Read more →Avalyn Pharma Files for $100 Million IPO With a Smarter Lung Disease Play
Avalyn isn't inventing new drugs; it's reformulating two proven pulmonary fibrosis medications as inhaled treatments to slash side effects. The Boston biotech filed its S-1 targeting $100 million, entering an IPO market that's finally rewarding clinical-stage companies with clear regulatory paths. Early data showed near-stabilization of lung function over 48 weeks.
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