China's pharmaceutical industry is shifting its focus toward artificial intelligence-powered drug candidates to fuel the next generation of cross-border deals. This strategic pivot follows a record period for innovative drug transactions, with cross-border deals reaching US$110 billion in the first half of 2026.
The sector's reorientation reflects broader momentum in China's drug development landscape. China accounted for approximately 30 percent of all new drugs during the period under review, demonstrating the country's growing significance in global pharmaceutical innovation.
The move toward AI-powered candidates represents an evolution in deal-making strategy as the industry seeks to sustain growth following the record-breaking transaction volume of the first half of 2026. This shift suggests companies are banking on artificial intelligence as a mechanism to identify and develop promising drug candidates for future international partnerships and acquisitions.
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