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Business1 hr ago

Chinese Drug Industry Turns to AI for New Deals After Record Spending

By TrendingWire Newsroom

China's pharmaceutical sector is shifting its focus to artificial intelligence-driven drug candidates to fuel the next round of transactions, following a record-breaking period for cross-border deals. In the first half of 2026, cross-border deals for innovative drugs reached $110 billion, a historic high. Now, companies are increasingly looking at AI-powered candidates to maintain momentum. According to Lan Gongtao, deputy director of drug registration at China's National Medical Products Administration, China accounts for about 30% of all new drugs currently under development worldwide, placing it second globally. This pivot toward AI reflects a broader trend in the industry, where machine learning and data analysis are used to identify potential drug compounds faster and more efficiently. The move could help Chinese firms stay competitive in the global market, especially as traditional drug development becomes more costly and time-consuming. AI tools can analyze vast amounts of biological data to predict how molecules will behave, speeding up the discovery process. While specific AI candidates were not named, experts say this approach could lead to more targeted therapies and reduce failure rates in clinical trials. The shift also signals that China's drug industry is adapting to new technologies to drive future growth and deal-making.

Sources: SCMP
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