Aanu Adeoye and Patrick Temple-West:
Investors in western biotechs face the prospect of lower valuations as Chinese start-ups attract growing investment from global drugmakers looking to replenish their pipelines.
China has emerged in recent years as a hub for drug development, particularly early-stage candidates, with faster timelines allowing companies to reach proof of concept ahead of western rivals.
Because the country’s biotechs can run clinical trials more quickly and cheaply, rivals from elsewhere risk being “undercut in licensing or partnering discussions”, said Oliver Kenyon, senior director at life sciences investor RTW.
This was particularly the case for “fairly crowded therapeutic areas”, he added, noting the trend “might compress long-term returns” for investors.