US Biotechs Debate Losing Ground to China

Investors, CEOs, and scientists discuss the rise of Chinese biotech and what it means for the US industry

Published on Feb. 26, 2026

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At a biotech conference in San Diego, industry leaders debated whether US biotechs are falling behind their Chinese counterparts. Speakers noted that China has become better at manufacturing and research, with real innovation coming out of the East. Key deals between Chinese and US pharmaceutical companies were highlighted, raising concerns that the US is losing its edge. Factors like cultural differences, cost-efficiency, and collaboration were discussed as ways the US could regain its footing in the global biotech landscape.

Why it matters

The rise of China's biotech industry poses a significant challenge to the long-standing dominance of the US in this sector. As Chinese companies become more innovative and strike major deals with US pharmaceutical giants, there are concerns that the US is losing its competitive edge. This story highlights the need for the US biotech industry to reevaluate its strategies and practices to maintain its leadership position.

The details

Speakers at the Biocom San Diego Global Partnering and Investors Conference debated the growing strength of China's biotech industry. Historically, US biotechs have worked with Chinese firms for cheaper and faster research before expensive human trials at home. But now, China is producing real innovation, not just copycat products. Key deals like AstraZeneca's $18.5 billion pact with CSPC Pharmaceutical and Pfizer's $495 million agreement with Sciwind Biosciences demonstrate China's rising influence. Factors like cultural differences, cost-efficiency, and collaboration were discussed as ways the US could regain its footing.

  • The biotech investment boom in the US began around 2012.
  • Venture capital spending in San Diego dropped almost 90% since 2021.

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 Samsara BioCapital (The 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 Candid Therapeutics (The 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 (The 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 (The 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 Flagship Pioneering (The Tribune)

What’s next

Experts predict that in the next five years, a major Chinese pharmaceutical company will break into the top 25 global pharma companies, presenting new opportunities for US-based biotech innovators to collaborate with Chinese firms.

The takeaway

The rise of China's biotech industry is a wake-up call for the US, highlighting the need for the American biotech sector to reevaluate its strategies, practices, and sense of urgency to maintain its global leadership position. Factors like cost-efficiency, cultural differences, and increased collaboration between US and Chinese firms will be crucial in determining the future competitiveness of the US biotech industry.