China is rapidly becoming a key source of biopharma innovation, and Western drugmakers are taking notice. As patents expire, research and development costs rise, and pricing pressures intensify, cross-border licensing deals with Chinese biotech firms are reshaping how companies build and diversify their pipelines.  

But growth opportunities often come with new risks. 

Combining Morningstar Sustainalytics' ESG Risk Ratings with Morningstar Equity Research, this report examines how investors can evaluate the ESG and geopolitical risks that increasingly accompany these partnerships, from product governance and patient safety to clinical trial oversight and data transparency.

In this report, you'll learn:

• How geopolitical and regulatory developments could affect cross-border biopharma partnerships.
• Which ESG factors may signal stronger risk management and partnership resilience.
• How to identify companies that may be better positioned to capture China-driven growth opportunities while managing execution risks.