China Leads Oncology Licensing as Europe Lags

The oncology licensing landscape is undergoing a seismic shift, and European biotech companies’ risk being left behind if they do not adapt quickly.

At Kadan’s Oncology Summit in Paris, France, Jacques Volckmann, global head of R&D external innovation atSanofi, and Frederic Scaerou, head of global business development atServier, pulled back the curtain on what companies are really looking for when they scan the horizon for oncology partnerships. Their insights revealed a market in flux, where old assumptions no longer hold, and new power centers are emerging at speed.

Perhaps the most striking revelation is that even within pharma’s upper echelons, there’s no consensus on what should come first in partnership discussions. Volckmann, representing one of the world’s largest pharmaceutical companies, takes the traditional approach: “Data is of the essence,” he insisted. “When we have the first interaction with a company or potential partner, we start with the data. Of course, the vision is important, but this is about science. We have to know what data they have.”

Scaerou flipped the script entirely. “I take the opposite,” he declared. “I want to know the vision first, that is what gets my attention. What gets the second meeting is when I see the data and how that matches the vision.” For Servier, a mid-sized player with 22,000 employees worldwide embarking on what Scaerou called “Servier 2.0,” the emphasis is on finding partners who can help them achieve “patient impact busters, not blockbusters.”

This divergence is not just philosophical; it reflects a fundamental tension in how pharmaceutical companies balance scientific rigor with strategic ambition. Both executives agree, however, that differentiation is non-negotiable. In a crowded field where everyone claims to have the next breakthrough, companies must demonstrate clear signals that their approach is genuinely first-in-class or can move faster than competitors.

The red flags that kill deals before they start

What turns pharma partners off? Both executives cited a surprising culprit: companies that lead with market size projections. “The red flag is when companies say ‘okay, I have a $4 billion potential market,'” Scaerou explained. “When you start there, you are already anchoring something about your expectation. I have not seen anything yet, I do not know your story, but you are already telling me big bucks.”

Volckmann echoed this sentiment from a different angle and told delegates that “the lack of understanding of what we are looking for” is his primary red flag. “A potential partner coming to say we want to work with you in this field and it’s like okay, that is not the field we are in. It can trigger an interesting conversation, but it does not lead anywhere.”

The message is clear: do your homework. Companies must understand the strategic priorities of their potential partner before they walk through the door. Both Sanofi and Servier highlighted that partnerships must align with their portfolio strategies, even if they occasionally leave room for “outliers” that bring something unexpected to the table.

The China wake-up call

If there is one trend dominating the oncology licensing landscape, both executives agreed it is theexplosive rise of Chinaas an innovation powerhouse. “I would summarize it in one word: China,” Volckmann stated. “This is the trend today. China is booming. It is a wake-up call here. There are so many things happening in China these days.”

The reasons behindChina’s ascentare multifaceted. Lower costs, regulatory speed, and an increasingly sophisticated scientific ecosystem. “If you look at the papers, look at the number of deals pharma companies are doing in China – every day there is something else,” Volckmann said. The implication is sobering. European biotech companies are facingunprecedented competitionfrom a region that can execute faster and often more cost-effectively.

Scaerou placed emphasis on how “we need to make Europe exist. We need to think about how we are going to make things here, make ourselves more visible and competitive.” Servier haslauncheda €200 million ($227 million) strategic venture fund specifically focused on European innovation, recognizing that “we are sitting in very fertile ground, and we can play a role in this.”

What Europe must do to compete

The conversation evolved into discussing Europe’s traditional strengths while acknowledging critical weaknesses.

Volckmann affirmed how one of the strengthsEuropeharnesses is the “quality of the science and technology” in the region. The problem is not the research; it is the execution. “The companies in Europe need to work on their speed and be able to demonstrate that they can excel.” He argued thatEuropehas assets it can leverage much better, but only if companies can match the velocity of their Chinese and American counterparts.

Scaerou added another dimension and highlighted howEuropeancompanies have a unique advantage in their openness to global regulatory standards from day one. “Only European companies are open enough to include US and China regulatory requirements if they think from the start that the drug should satisfy global regulatory standards,” he observed. This global mindset, combined with access to world-class key opinion leaders at European institutions, can create powerful networks that extend far beyond the continent.

The new partnership paradigm

One shift oncology licensing has seen is the move toward earlier-stage partnerships.

“Companies like us are going earlier and earlier. We are doing our shopping everywhere,” Scaerou said. While clinical proof of concept remains the “sweet spot” for deals, both Sanofi and Servier are increasingly willing to engage with companies in early research stages.

This trend reflects a pragmatic reality and reveals that no company can house all necessary technologies internally.

“There is no way you can have all the technologies in-house, you need to partner,” Volckmann acknowledged. Scaerou described how most companies will have a mixture of both (in-house and acquired) and told the audience “You have to use home ingredients and some ingredients you get outside. The best recipe will have both.”

Quotes have been lightly edited for clarity.

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