Authored by: Huang Jianwen
The People’s Republic of China (“PRC”) is the world’s second largest healthcare and pharmaceutical market. According to Frost & Sullivan’s forecast, the PRC healthcare and pharmaceutical market will increase to US$320 billion by 2025. There has been an upturn in M&A activity in the PRC healthcare and pharmaceutical market since 2023. At the end of 2023, AstraZeneca announced its acquisition of Gracell Biotechnologies Inc., a leader in cell therapy in the PRC, for US$1.2 billion, which is the first M&A deal in which a multinational pharmaceutical company fully acquired a PRC biotechnology company. Based on the project experience and observations of King & Wood Mallesons’ Life Sciences & Healthcare Group, over the past year, foreign-invested pharmaceutical enterprises in the PRC have remained active in conducting M&A, technology licensing, and other related deal-making activities. We anticipate this trend will persist into 2024, despite the uncertainty of the international and domestic macro environment and other factors.