00:00 Speaker a
According to the latest report of Harvard Belfer’s Science and International Affairs Center, China has a direct opportunity to overtake US biotechnology. To get more, let’s say hello to Arta Rawi’s American industrial markets leader and health sciences and wellness, as well as the Yahoo Finance itself. Welcome to you both. Okay I’ll start with you. UH, maybe it’s just a big question, a big picture of the picture. Do you think the US has investment power to overtake China in biotechnology?
01:05 Arta Rawi
Yes, thank you for having me. UH, Biotech is a big medicine innovation feeder and it only cherishes the ecosystem well. So to answer your question, what do you need in that ecosystem to cherish it? UH, the investment capacity we last had, you know for decades, if you want, and continue to invest in those innovations to move on. NiH was probably the world’s largest VC, which exceeds $ 40 billion, is not provided with funds to start a business. Then you have a talent that you know were all the best universities and MD and doctoral students who are dedicated to its promotion. And then you need a transfer system for this technology to make that intellectual property. And then, with those investment capabilities, it is constantly growing, then trying and going to people, and eventually being created for all the use. So yes, the US still has the opportunity to invest, but this is not the only play in the city, taking into account the development of China.
03:01 Anjali Camlani
I am curious about art because we know, I know that you have watched deals and UH, we have seen that the number of transactions has increased over many years. I have seen one of you sent, which is still in 2025. There are more than half of what we saw in 2024. So, we can expect it to be overtaken by 2024. Because I know that some ongoing transactions are more, um, what you would call licensing deals, right? Not necessarily this money will be invested in Scratch and innovation, but these are more things that have already happened and are created. Talk to me about it and why it matters.
04:07 Arta Rawi
I mean the numbers are quite convincing. A couple of years ago 2016 We had almost no transactions under billion dollars. Since last year, Chinese property licensing transactions have been $ 30 billion, and in 2025. – A very strong start, so they will definitely overcome this number. So the reason why this is happening is in 2015, the Chinese Communist Party gave priority to invest in biotechnology and was a priority sector. And it was 10 years ago, and that the 10 -year trip began playing for their benefits, as China historically has historically known for the ingredients and auxiliary substances of these active products, which is like chemicals used by medicines to produce small molecules. And that trip now takes them to higher innovations. We probably still haven’t seen the first class, but obviously they are looking for the best classes, for example, there are shots for the goal if you see more and more.
05:44 Anjali Camlani
Well, that’s why it would be my question because I know that we have seen how they are doing copy cats or metoos in terms of the type of innovation from China. Hm, do we hope they have a place to abandon the US, then in the sense of another world?
06:12 Arta Rawi
I mean that there are some examples, early examples that some Chinese wealth is actually comparable from head to head, you know, overcome or exceed, at least align the effectiveness and safety profile of some evenings. But it is also a journey as a sound issue. So what is it what they need more to get there? So they have talent. I mean that many Western -educated MD and PhD degrees have returned to China. The government itself, as part of the priority program, has invested in it. So the question is, do they have the strategy of the retreat of those entrepreneurs? And I think they are missing because they are not like the IPO market similar to Western standards. More recently, there are no similar acquisitions and acquisitions. I think it is there that weakness can be the opportunity to come up with them. But because of our speaking suggestions, they are not available to intellectual property concerns about reliability and confidence in data because, you know, there is no institution like the FDA in the world that everyone trusts and hopefully continues to trust. And for this reason, it seems that the transactions are more of the property purchases. So I do not risk acting in China, but I buy property and licensing transaction, and I will continue to develop it, especially if you can make this cheaper and faster in China, which was their competitive advantage over Western companies, then you fasten it into a person, and then human tests can be performed in the West. I think it can be a winning formula for industry.