ICON plc has released the results of its 2025 global biotech survey, revealing China’s growing dominance in the biotech sector and offering insights for Western companies to remain competitive. The survey, which gathered input from over 260 biotech professionals and venture capital executives across the US, Europe, Asia-Pacific (APAC), and the Middle East, includes a global analysis of 163 respondents and a focused look at 100 China-based biotech leaders. The findings show that China is emerging as a major global innovation hub, with its biotech industry demonstrating strong momentum. Despite ongoing challenges such as funding pressures and complex regulatory environments, 92% of biotech leaders expect to meet their next investment milestone, and 75% plan to increase R&D spending over the next two years—underscoring the sector’s resilience. Funding remains a key concern, with 41% of organizations actively seeking additional R&D capital, a 27% increase from 2023. While large pharma partnerships, venture capital (VC), and government grants remain the top funding sources globally, there is a notable shift in APAC, where VC funding now accounts for 60% of current funding—compared to 32% in the US and 30% in Europe. This has led to increased interest in alternative financing models such as royalty financing, asset carve-outs, and crowdfunding. Talent acquisition is also becoming a growing challenge, especially in APAC, where 47% of respondents reported talent shortages as a major operational issue—nearly three times the rate in the US (18%) and Europe (17%). In terms of therapeutic innovation, next-generation modalities are gaining ground. Cell therapy has overtaken small molecules as the most prominent modality, now making up 40% of biotech pipelines. Antibody drug conjugates (ADCs) and microbiome therapies follow closely at 31%. Therapeutic focus has also evolved, with neurology (44%), cardiovascular (39%), and immune disorders (32%) now leading the field—surpassing oncology, which had previously dominated. The complexity of drug development remains the top operational risk, cited by 73% of respondents as one of their top five concerns. However, the industry is turning to digital transformation to address this. A strong majority—76%—believe AI and other digital technologies will significantly accelerate R&D within the next two years. AI-enabled asset selection in drug discovery is now seen as the most impactful tool, with 41% of respondents identifying it as a key accelerator—up from 26% in 2023. The China-specific survey revealed that while Chinese biotechs face similar challenges—funding, regulation, and development complexity—their outlook is more optimistic. Geopolitical concerns are less of a priority, and confidence in investment returns and product success is higher. Cardiovascular and oncology remain the top therapeutic areas in China, diverging from the global trend toward neurology, though cell therapy, microbiome therapies, and ADCs are prominent across all regions. ICON’s President of Biotech, Deepali Suri, emphasized the transformative nature of the current era, noting that China’s rise is a positive signal for global collaboration and innovation. She urged Western biotechs to adapt by investing in new funding models, talent development, and digital tools to stay competitive. The full reports are available at www.ICONplc.com/biotech.