China's Biotech Sector Hits New Milestone: 81 Innovative Drug Licensing Deals Worth $1.1B in H1 2026

China approved 81 innovative drug licensing deals worth approximately $1.1 billion in the first half of 2026, according to the National Medical Products Administration. The figure has already reached 80% of the full-year 2025 total, marking a record high. The country also approved 38 Class I innovative drugs in the first half, including 11 new-target and new-mechanism drugs, all domestically developed.

The policy landscape shifted significantly when the National Health Commission, National Administration of Traditional Chinese Medicine, and National Disease Control Bureau jointly released the 2026 National Essential Medicine List on July 9, effective September 1, 2026. For the first time, 16 innovative drugs were included in the list, comprising four domestic Class I drugs. Hong Kong-listed biotech stocks surged on July 16 amid strong earnings expectations and the supportive policy environment, with China Biologic Products (02197) rising over 11% and other players such as Luokung Medical (09688) climbing more than 5%.