First Read: China Healthcare "Biopharma funding: Jun 2026 up 26% YoY and..."

Research evidence excerpt

First Read: China Healthcare "Biopharma funding: Jun 2026 up 26% YoY and..."

Global Research

3 July 2026ab

First Read

EquitiesChina Healthcare

Biopharma funding: Jun 2026 up 26% YoY and China

3% MoM; IPO and follow-ons turned stronger Healthcare

Chen Chen, PhD

Analyst

chen-zb.chen@ubs.com

June 2026 funding up 3% MoM and 26% YoY, supported by IPO and follow-on +86-10-5832 8201

rebound

David Guo, PhD

China biopharma funding (including VC, PE, IPO and follow-on) recorded Rmb9.5bn in Analyst

June 2026, up 26% YoY and 3% MoM. We note the YoY growth was mainly driven by a S1460524040001

strong rebound in IPO proceeds and follow-on financing, partly offset by MoM decline in david-za.guo@ubs.com

VC/PE after a strong May. The Q226 number reached Rmb28.0bn, up 6% YoY and 36% +86-10-5832 8010

sequentially. YTD funding recorded Rmb48.6bn, up 34% YoY and 27% above 2019 Anita Wei

levels. We highlight that VC/PE remained the largest YTD component at Rmb25.9bn, up Analyst

118% YoY, suggesting continued capital support for early-stage biotech companies and anita.wei@ubs.com

a sustained recovery backdrop for domestic CRO demand, albeit this may need +852-2971 7459

monitoring in the following months after a relatively muted June.

IPO and follow-on activity picked up, while VC/PE moderated from May high

IPO proceeds increased 41% MoM and 2,453% YoY to Rmb4.6bn in June 2026, mainly

driven by five IPO events including Libang Bio, Longbio Bio, Micot Pharma, Hj Science

and Jiangxi Biological Products. This indicates an improvement in HK healthcare IPO

execution following a quiet Q126; still, we think the long queue (60 in HK and 12 A

share active applications) supports a strong IPO market going forward. Follow-on

financing also rebounded strongly to Rmb2.5bn, up 1,014% MoM, driven mainly by