On the 12th, Wu Hsin-Fang, General Manager of CDIB Capital Group’s biotech fund, highlighted that recent U.S. policy changes—including the Most Favored Nation (MFN) drug pricing and Section 232 industrial tariffs—are triggering structural shifts in the global biotech industry. Under this new landscape, leveraging capital markets with high market valuations and strong balance sheets, in collaboration with venture capital, through strategic alliances and M&A, is crucial for capturing emerging biotech opportunities.
At the “2025 Biotech Forum—New Strategies for the Biotech and Medical Industry” organized by the Economic Daily News, Wu delivered a keynote titled “Taiwan Biotech Investment Outlook and Emerging Opportunities under the New International Landscape.”
Wu noted that after the U.S. implemented reciprocal tariffs and Section 232 measures, uncertainty in pharmaceutical and medical device import policies, combined with pressure from the appreciating New Taiwan Dollar, has squeezed the gross margins of export-oriented biotech firms. Market concerns gradually eased after Pfizer reached an MFN drug pricing agreement with the U.S. government. Pfizer committed to investing US$70 billion in the U.S. over three years in exchange for tariff exemptions and pricing certainty, establishing a new model for industry collaboration.
Global pharmaceutical companies are facing a patent cliff totaling approximately US$175 billion, driving increased demand for R&D and M&A. According to statistics, from January to October 2025, global biotech M&A totaled US$89.6 billion across 34 deals, with full-year projections expected to exceed US$180 billion, marking a five-year high. Large pharmaceutical firms, leveraging cash reserves and debt capacity, are actively using acquisitions to strengthen new drug pipelines and regional presence.
Wu emphasized that compared with international markets, where AI tech stocks have absorbed much of the investment capital, Taiwanese biotech stocks have remained relatively stable. Since the beginning of 2025, new drug and medical device stocks have dominated trading, showing a polarized fundraising pattern. Market leaders now report annual revenues between NT$15–20 billion, demonstrating both scale and integration capability. Newly listed medical device companies have adopted an “equipment + drug + service” integrated model, raising NT$10.8 billion in IPO funds—an all-time recent high. Overall, the biotech industry is returning from “hype-driven” valuations to fundamentals, with greater focus on performance and R&D achievements.
Looking ahead to 2026, the implementation of dual regenerative medicine regulations is expected to be a turning point for Taiwan’s industry. Clearer regulations will allow Phase II clinical products with proven safety and preliminary efficacy to obtain conditional five-year marketing approval earlier, accelerating commercialization. This policy is anticipated to expand the regenerative medicine supply chain, while promoting clinical research, testing, and manufacturing, creating a new wave of investment opportunities.
The combination of AI and medical technology (Medtech + AI) is also emerging as a key investment direction. The medical device sector is transforming from single hardware products to “hardware-software integration” and “complete solutions,” using AI analytics, software control, and cloud platforms to build differentiated advantages and generate higher added value.
Wu concluded that ongoing international changes continue to test corporate resilience. Biotech companies with scale and speed are better positioned to respond and should focus on differentiated, irreplaceable innovative products. Taiwanese biotech firms are beginning to pursue M&A for internal resource integration, product line expansion, vertical integration, or cross-industry expansion to create new businesses and enhance competitiveness.
In this international context, Wu advised Taiwanese companies to leverage capital markets and venture funding to pursue strategic alliances and M&A, effectively integrate resources, expand product lines, strengthen upstream and downstream linkages, or foster cross-industry cooperation. By doing so, firms can enhance industry resilience and global competitiveness, while capitalizing on three key directions: international licensing opportunities, regulatory relaxation, and technological integration, preparing for the next growth cycle.
Resource: 中華開發生醫基金總座吳欣芳：戰略聯盟 掌握機遇
