US Venture Capital Opens Path to Funding for China Biotech Firms

Faced with a moribund share sale outlook and emboldened by their growing recognition on the global stage, some Chinese biotechnology companies have found a new way to cash in on their innovative therapies.

They’re partnering with American venture capitalists to create new, US-based startups built around promising drug compounds, ensuring that they get a healthy payoff should those therapies succeed. The approach is also allowing them to side-step geopolitical tensions that hang over Chinese drug companies’ entry into Western markets.

The route, commonly referred to as a NewCo arrangement, has led to at least five new US-based companies so far ...