Royalty Pharma opens Hong Kong base amid surge in China biotech deals

Royalty Pharma has opened a new office in Hong Kong at International Finance Centre this May, marking its expansion into Asia-Pacific region. This decision arrives as Chinese biotech firms encounter tightening US investment restrictions, alongside a 30 percent rise in business development deals year-on-year through May 31.

BRIC Team

Jun 30, 2026 · 1 min read · 15 views

Royalty Pharma opens Hong Kong base amid surge in China biotech deals

Key Takeaways

•Royalty Pharma opened its Hong Kong office at the International Finance Centre in May 2023, marking a strategic expansion into Asia-Pacific.
•Chinese biotech firms experienced a 30 percent increase in business development deals year-on-year through May 31, 2023.
•The total deal value for out-licensing agreements surged by 87 percent during the same period, according to HSBC's June 23 report.
•Kenneth Sun stated, 'Chinese biotech firms would need royalty financing as an alternative,' highlighting the sector's evolving funding needs.
•The shift towards AI stocks has complicated fundraising for biotech, making royalty financing increasingly critical for these companies.

New Hong Kong office by Royalty Pharma,world's largest buyer of biopharmaceutical royalties,signals big move into Asia-Pacific. Global drug companies have been setting up in city. Comes after surge in out-licensing deals among mainland Chinese biotech firms.

Founded 1996,headquartered New York City,Royalty Pharma opened Hong Kong office at International Finance Centre in May. Firm finances drug developers,research institutions for share of future sales. Model key for Chinese biotech facing geopolitical tensions,US investment limits.

Kenneth Sun,senior VP and Asia head at Royalty Pharma,says demand for royalty financing is rising . “Chinese biotech firms would need royalty financing as an alternative,” he said. Sector under pressure — 30% spike in business development deals,including out-licensing,year-on-year through May 31. Total deal value jumped 87% same period,reports HSBC June 23.

Liquidity shift towards AI stocks makes traditional fundraising trickier,leaving biotech sector vulnerable to Hong Kong IPO market swings. As firms search for funding,role of royalty financing likely to grow…but is it enough?