Chinese Team Achieves Minimally Invasive Transplantation of Regenerated Pancreatic Islets, Innovative Drug Concept Resurges in Activity

Ask AI · Regenerative Islet Minimally Invasive Transplantation Technology: How Will It Reshape the Future of Diabetes Treatment?

On March 18, innovative drug concepts became active again, with stem cell directions leading the surge. China National Pharmaceutical Group (Sinopharm) hit the daily limit, Hualan Co., Ltd. and Rongchang Biotech rose over 5%, setting new historical highs. San Sheng Guojian, Olin Biotech, Mengke Pharmaceuticals, and Jimin Health also saw significant gains.

According to reports from People’s Daily Online, the Molecular and Cellular Science Excellence Innovation Center of the Chinese Academy of Sciences (Institute of Biochemistry and Cell Biology) learned that Dr. Cheng Xin’s team, in collaboration with Professor Yin Hao’s team from the Second Affiliated Hospital of Naval Medical University (Shanghai Changzheng Hospital), recently achieved the world’s first regenerative islet (E-islet) minimally invasive transplantation using both autologous and allogeneic stem cell sources. This breakthrough enabled pancreatic function reconstruction and autonomous blood sugar regulation in Type 1 diabetes patients. The related results have been published online in the international academic journal The Lancet Diabetes & Endocrinology.

After more than twenty years of in-depth research, our Chinese research team has established a new technical system based on endodermal stem cells and successfully developed a “Regen Islet E-islet” for treating severe pancreatic islet dysfunction and failure in diabetes. Once infused into the portal vein, the Regen Islet E-islet can perform the functions of normal pancreatic tissue, maintaining stable blood sugar control.

Shanghai Securities states: According to Pharma Cube, as of February 15, China’s innovative drugs have seen 39 license-out transactions, with an upfront payment of approximately $2.953 billion and a total value exceeding $49 billion, accounting for more than one-third of the total for 2025. In 2025, China’s innovative drug BD (business development) transactions reached a record high, with 157 license-out deals, upfront payments of $7 billion, and total value around $135.7 billion, doubling from 2024. (1) On January 30, 2026, CSPC Pharmaceutical Group and AstraZeneca signed a licensing agreement to develop innovative long-acting peptide drugs using the group’s proprietary sustained-release delivery platform and peptide AI discovery platform. Under the agreement, CSPC will receive a $1.2 billion prepayment, $3.5 billion in milestone payments, up to $13.8 billion in sales milestone payments, and sales royalties. (2) On February 8, 2026, Innovent Biologics announced a strategic partnership with Eli Lilly to jointly advance global R&D of innovative drugs in oncology and immunology. This is their seventh collaboration. According to the agreement, Lilly will obtain exclusive global development and commercialization rights outside Greater China, while Innovent retains all rights within Greater China. Innovent will receive a $350 million upfront payment, up to approximately $8.5 billion in milestone payments, and sales sharing. (3) Additionally, several Chinese biotech companies have formed major collaborations with MNCs using cutting-edge technology platforms: Genor Biopharma licensed preclinical RNAi therapies to Roche ($200 million upfront + $1.5 billion milestone payments); Sanyou Bio licensed blood-brain barrier shuttle technology antibodies to Novartis ($165 million + $1.5 billion); Ascletis Pharma licensed TL1A/IL-23p19 bispecific antibody SIM0709 to Boehringer Ingelheim (€42 million + €1.016 billion); ReBio Biotech licensed six MASH siRNA assets to Madrigal ($60 million + $4.4 billion). All four deals involve preclinical assets, demonstrating China’s innovative capabilities gaining global recognition. We believe that recent Chinese innovative drug BD transactions are active, with impressive amounts and earlier stages of R&D, reflecting ongoing global recognition of China’s cost and efficiency advantages. Key sectors to watch include: Chinese biopharmaceuticals, CSPC, Innovent, and others.

Giant Wall Securities points out: Recently, domestic policies have continued to send positive signals. Additionally, China’s high-quality innovative drug assets continue to be licensed out and engaged in BD collaborations, maintaining high activity levels. This ongoing trend validates the comprehensive competitiveness of Chinese pharmaceutical companies in original innovation, clinical translation, and global business expansion. Overall, under the upward industry trend and increased policy support, high-quality pharmaceutical assets with differentiated innovation and sustainable potential remain key focus areas. Currently, the main investment themes in the biotech and pharmaceutical sector should focus on two directions: (1) Companies with core technology platforms, strong clinical development capabilities, and global cooperation potential, whose valuation models are expected to shift from single-product logic to platform-based logic; (2) Companies benefiting from the high-quality development of innovative drugs, optimized review and approval processes, improved payment systems, and industry policy support, including Contract Research Organizations (CROs), innovative medical devices, and related supply chains.