Structuring Cross-Border China Biotech “NewCo” Transactions


7 minute read | June.18.2025

Following over a decade of sustained investment in the biotechnology sector by the Chinese government and PE/VC funds, Chinese companies are becoming a go-to source for best-in-class and first-in-class therapies.

Deals for accessing Chinese biotechnology innovation generally follow either a licensing model or a “NewCo” model, where a newly formed entity outside China licenses the ex-China rights and investors and/or licensees will fund development of the drug or technology through equity investments and/or licensing transactions, often with the Chinese originator retaining an equity stake in the “NewCo”.

In this article for Life Science Leader, Orrick’s Stephen Thau and Jeff Zhang review the key issues and risks to consider when structuring cross-border “NewCo” deals.