Insights into China Biotech’s New Approach: Spin-off-NewCo Model

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Authors: Han Kun Law Offices Aaron Gu | Cheng Chen | Pengfei You | Duzhiyun Zheng | Matt Zhang | Franky Yu | Leyi Wang | Shuwen Sun You may click on the title below to read the Chinese version of the article. 《药企出海新热点：管线分拆“SON”模式的实践解读》 Background China’s pharmaceutical industry is witnessing a notable surge in “pipeline spin-off projects”, a model commonly referred to as the "Spin-off-NewCo" or "SON" model. Within the past two months, we've been advising on nearly ten SON projects. Leading pharmaceutical companies in China are more frequently adopting the SON model to separate parts of their pipelines into new, independent companies. These spin-off projects have garnered considerable interest from multinational industry leaders and international investment institutions, underscoring substantial opportunities for global collaboration. The SON model is a response of the market to changes in the financing environment and cross- ………………………………