HK Stock Concept Tracker | European Capital Flocks to China for Bargain Hunting as Chinese Innovative Drugs Enter Overseas Commercialization 4.0 Era (with Concept Stocks)

Recently, at the "FHIM2026 Global Pharmaceutical Cooperation and Investment Annual Conference" held in Shanghai, heads of more than 10 European life science investment institutions came as a group, aiming to identify good assets in China's innovative drug industry chain. Li Na, co-founder and CEO of FHIM, pointed out that China's biopharmaceutical industry has comprehensive strengths such as fast R&D speed, low R&D costs, and rapid clinical trial execution, which is the fundamental reason why global capital is paying close attention to the Chinese market. Data shows that China's share of global biopharmaceutical out-licensing transactions rapidly climbed from 5% in 2020 to 32% in 2025; the number of cross-border transactions in 2025 reached 157, with a total value of US$136 billion, 2.6 times that of 2024. In the first three quarters of this year alone, the amount of outbound technology licensing approached the full-year level of last year. Jasper Bos, a board member of Forbion, said during a roundtable discussion that no one can ignore the Chinese market, otherwise they will miss huge business opportunities. Li Na believes that combining Europe's mature infrastructure (multinational pharmaceutical companies, investment institutions, research and clinical systems, etc.) with China's innovative assets can allow Chinese innovation achievements to obtain fair and reasonable valuation and returns. Domestic pharmaceutical company executives said that biomedicine naturally has global attributes, but in recent years, US investment reviews targeting the biopharmaceutical sector and continuous adjustments to related regulatory rules have brought new uncertainties to cross-border BD cooperation and global development of pipelines. Companies are willing to focus more on the European market and seek more stable cooperation space. Some analyses point out that Europe's regulatory constraints are relatively moderate, and with the implementation of the US MFN pricing mechanism, drug transaction prices in the European market will become an important reference benchmark in the US drug price constraint system. Europe has prominent strategic value for Chinese pharmaceutical companies. In addition, from the perspective of industrial complementarity, Europe's scientific research heritage, industrial experience, and capital ecosystem are important support for Chinese innovative drugs to achieve global upgrading. First, its large and balanced payer market can help Chinese innovative companies diversify single-market risks. Second, Europe has a deep heritage in original innovation and mature industrial operations. In basic research fields such as target discovery and new mechanisms of action, Europe has always been an important global source of innovation. At the same time, European multinational pharmaceutical companies have over a century of global commercialization experience and mature methodologies for promoting global product launches. In addition, Europe has a long-term patient capital ecosystem. EQT Life Sciences under EQT Group, which attended this meeting, has nearly 30 years of investment experience and has invested in more than 150 companies cumulatively. It is reported that FHIM is working with European life science investment institutions to prepare a China-Europe healthcare master fund, with preparations planned to officially start in 2027, to promote cross-border licensing, joint development, and investment and financing matching for China-Europe innovative drugs and medical device projects. Industrial points out that Chinese innovative drugs going overseas maintain high prosperity, and in the first half of 2026, Chinese pharmaceutical companies' BD transaction value accounted for 58% of the global total. As blockbuster products that completed overseas licensing earlier are successively approved and launched in Europe and the United States, more than 5 domestic innovative drugs are expected to begin overseas commercialization in 2027. Chinese innovative drugs are moving toward the 4.0 era of overseas commercialization, and the industry logic continues to strengthen. Related concept stocks: JUNSHI BIO (01877): Its core product toripalimab adopts a licensing cooperation model and has reached commercialization cooperation layouts with partners in more than 80 countries; the product has been approved and launched in more than 50 countries and regions worldwide. BeOne Medicines Ltd. (06160): Zanubrutinib (BRUKINSA) has been approved in many places around the world including Europe and the United States, and its market share in the BTK inhibitor track has exceeded 30%; global sales in the third quarter of 2026 were approximately RMB9.424 billion, of which the US market was approximately RMB6.816 billion. The company has built its own overseas sales team, with overseas revenue accounting for more than 70%, making it the only pharmaceutical company in China to achieve a closed loop of global independent commercialization (Note: Zanubrutinib has not yet been approved in Japan, and an application is being submitted). Jiangsu Hengrui Pharmaceuticals (01276): Its overseas expansion is mainly through out-licensing and overseas clinical cooperation; in May 2026, it reached a strategic cooperation with BMS on 13 early-stage pipeline projects, with a potential total transaction value of up to US$15.2 billion; in September, it also reached a licensing cooperation with Novo Nordisk on HRS-1596, with a potential total value of up to US$2.6 billion. The company leads domestically in R&D pipeline scale, with 25 Class 1 innovative drugs already launched; in the first three quarters of 2026, net profit attributable to shareholders was RMB6.923 billion, up 20.38% year on year, of which licensing revenue was RMB2.781 billion, up 31.1% year on year. InnoCare Pharma (09969): Its core small-molecule product orelabrutinib has been approved and launched in Singapore and Australia; in September 2026, the company reached a new drug platform cooperation agreement with Eli Lilly to jointly develop up to 5 new target projects, with a potential total value of up to US$3.35 billion (this cooperation does not include orelabrutinib).