U.S. Biotechs Discuss Falling Behind China

Industry leaders debate whether U.S. biotechs are losing ground to China's rapid growth and innovation.

Published on Feb. 26, 2026

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At a biotech conference in San Diego, industry leaders discussed concerns that U.S. biotechnology companies are falling behind their Chinese counterparts. Speakers noted that China has become a leader in biotech research, manufacturing, and innovation, with Chinese pharmaceutical companies inking major deals with U.S. firms. Experts cited factors like China's 9-6-6 work culture and a focus on cost-effective drug development as reasons for China's rise, while also acknowledging the U.S. ecosystem's strength in novel biology and innovation.

Why it matters

The debate over the U.S. biotech industry's competitiveness with China highlights broader concerns about American technological and economic leadership. As China continues to make strides in key industries like biotechnology, there are worries that the U.S. is losing its edge and ceding ground to its global rival.

The details

Speakers at the Biocom San Diego Global Partnering and Investors Conference discussed how China has rapidly advanced in biotech, moving from simply conducting cheap research for U.S. firms to now producing real innovation. In the first few months of 2026, Chinese pharmaceutical licensing deals hit record highs, with major deals between Chinese and American companies. Experts cited factors like China's intense 9-6-6 work culture and a focus on cost-effective drug development as reasons for China's rise, while also acknowledging the U.S. ecosystem's strength in novel biology and innovation.

  • In the first few months of 2026, Chinese pharmaceutical licensing deals hit record highs.

The players

Srini Akkaraju

Managing partner of Palo Alto's Samsara BioCapital.

Ken Song

CEO of San Diego-based Candid Therapeutics.

Mathai Mammen

CEO of Parabilis Medicines in Cambridge, Massachusetts.

Nancy Thornberry

Founding CEO of New York's Kallyope, moderating the Innovation & Productivity in China panel.

Judith Li

Partner at Lilly Asia Ventures.

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What they’re saying

“There's never been a question of whether China will be the leader in biotech. It will absolutely be the leader. The question was when. The answer is it's a hell of a lot sooner than it should have been.”

— Srini Akkaraju, Managing partner of Palo Alto's Samsara BioCapital (San Diego Union-Tribune)

“China's like a hungry bear and pharma companies have a chest full of honey. We've been eating all of this honey for years and years, and now it's like we've taken a nap.”

— Ken Song, CEO of San Diego-based Candid Therapeutics (San Diego Union-Tribune)

“It's a bit of a wake-up call. Like, OK, wow, yeah, we need to do something with a similar sense of urgency.”

— Mathai Mammen, CEO of Parabilis Medicines in Cambridge, Massachusetts (San Diego Union-Tribune)

“There is this one metric that is extremely unpopular for me to say. Dollar cost per patient is a metric that we should probably reinject.”

— Judith Li, Partner at Lilly Asia Ventures (San Diego Union-Tribune)

“In the next five years, we'll see a major Chinese company in the top 25 pharma companies, and you can go pitch them your U.S.-based innovation.”

— Paul Biondi, Managing partner at Cambridge-based Flagship Pioneering (San Diego Union-Tribune)

What’s next

The investors and experts at the conference discussed ways the U.S. biotech industry can regain its competitive edge, including a renewed focus on cost-effective drug development and fostering a greater sense of urgency in the industry.

The takeaway

The debate over the U.S. biotech industry's competitiveness with China highlights broader concerns about American technological and economic leadership. As China continues to make strides in key industries like biotechnology, there are worries that the U.S. is losing its edge and ceding ground to its global rival, underscoring the need for the U.S. biotech industry to adapt and innovate to maintain its position.