UBS: China Biopharma Funding — March 2026 Up 26% YoY Despite 34% MoM Pullback; VC/PE Momentum Sustained
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UBS reports that China biopharma funding reached RMB 4.4 billion in March 2026, marking a 26% year-over-year increase but a 34% month-over-month decline—the third consecutive monthly contraction. Despite this sequential pullback, total funding remained above March 2024 and March 2023 levels. The resilience of venture capital and private equity funding stood out, reaching RMB 3.4 billion, up 116% YoY and slightly higher MoM. This signals continued capital inflows into early-stage biotech companies. Meanwhile, IPO activity remained dormant for the second consecutive month, although the IPO pipeline expanded to 99 companies (86 H-shares and 13 A-shares), laying the groundwork for a future market rebound.
Follow-on offerings fell 21% YoY and 68% MoM. For the first quarter of 2026, total funding surged 107% YoY and 54% above Q1 2019, despite a 31% sequential drop. Globally, biopharma financing reached US$4.4 billion in March, up 34% YoY but down 10% MoM, with Q1 2026 surging 95% YoY. Global IPO and secondary offerings rose 146% YoY.
UBS views the sustained VC/PE strength as a constructive signal for the sector. If this momentum persists, it should support a recovery in domestic CRO demand. UBS-covered CDMO companies maintain a positive outlook on global demand, underpinned by new modalities and orders from multinational pharmaceutical companies.