China's 10 industries' outlooks for 2024

Biotech industry

In 2023, the outbound transaction amount and trading volume of Chinese pharmaceutical companies grew rapidly, and the innovative drugs gradually occupied the dominant position in outbound projects. In 2024, the situation is expected to replicate and continue.

As the industry increased investments in research and development, domestic innovative drugs are expected to enter the quality improvement stage. Moreover, the cost of R&D is likely to stabilize, improving the quality of the R&D projects.

An industry insider said AstraZeneca buying China's Gracell Biotechnologies for $1.2 billion could be a turning point. Gracell will become the first Chinese biotech company to be acquired by a multinational pharmaceutical company.

For many biotech founders and investors, the mergers and acquisitions may become an important exit channel after the A-share IPO stage tightening.