Everything seemed to be aligned for success, but shares in leading Chinese antibody developer RemeGen recently dropped by nearly 40%, reflecting a range of internal and external likely factors.

The global battle of the blockbuster obesity drugs appears set to come to China with the approval of Lilly's Mounjaro, although domestic competitors are fast catching up. 

The anticipated business rebound for China after its post-COVID reopening of markets in 2023 has not materialized and structural market issues continue to affect EU firms' China sentiment.

A reported buyout bid for Legend Biotech has delivered a much needed shot of confidence to the Chinese biotech sector, despite not being confirmed. Amid a shifting environment, Hengrui also sees globalization as essential to its future.

The latest FDA guidance will have profound impact to Chinese biotech sector at a time when going global and a US approval is vital to its very survival.

China's deepening economic downturn is impacting foreign business confidence in China, while recent high-profile events have created uncertainties around the go-global push by Chinese pharma firms, at a time when this has become critical to their very survival.