Deutsche Bank analyst Cyrus Ng reports that China's healthcare industry may continue to have external licensing activities in 2026, but the market's views on this industry may become more rational. He pointed out that China accounts for 11%-13% of global drug development expenditure, yet contributes about 40% of innovative drugs in clinical development, and will remain a key source for global pharmaceutical companies to obtain high-potential, low-cost pharmaceutical assets. However, Ng said that the timing, scale, partnership and cooperation model of externally authorized transactions are still highly unpredictable, adding that the market will begin to view these transactions as benefits beyond expectations rather than as probabilistic events. He expects that as more companies achieve profits in the context of improved financing environments and favorable policy environments, investors should refocus on company fundamentals next year.

Deutsche Bank analyst Cyrus Ng reports that China's healthcare industry may continue to have external licensing activities in 2026, but the market's views on this industry may become more rational. He pointed out that China accounts for 11%-13% of global drug development expenditure, yet contributes about 40% of innovative drugs in clinical development, and will remain a key source for global pharmaceutical companies to obtain high-potential, low-cost pharmaceutical assets. However, Ng said that the timing, scale, partnership and cooperation model of externally authorized transactions are still highly unpredictable, adding that the market will begin to view these transactions as benefits beyond expectations rather than as probabilistic events. He expects that as more companies achieve profits in the context of improved financing environments and favorable policy environments, investors should refocus on company fundamentals next year.