Many innovative drug companies fall into a common misconception when expanding overseas, equating “building their own ship” with strength and viewing “borrowing a ship” as a lesser option, said Liu Weimin, deputy president of Stellar Biotech, arguing that the real issue is not ownership of the vessel but a company’s underlying ability to operate globally.
He shared his insights on Friday during the 2025 T-EDGE Conference. Liu said debates within China’s biopharmaceutical industry often frame overseas expansion as a binary choice: either establish independent international commercialization capabilities or rely on partnerships with multinational pharmaceutical companies. In his view, this framing oversimplifies a far more complex strategic decision.
“‘Borrowing a ship’ and ‘building a ship’ are not mutually exclusive options,” Liu said. “They are applied questions of timing and strategy. The core issue is a company’s capability to go global, not who owns the ship.”
As Chinese innovative drugmakers accelerate their push into international markets, licensing-out deals and co-development partnerships have become increasingly common. These arrangements allow companies to leverage the regulatory experience, sales networks and market access of established global players, often reducing upfront risk and capital requirements.
However, Liu noted that some companies are reluctant to pursue such partnerships, worrying that the “borrowed ship” label may signal weakness or a lack of ambition. This mindset, he said, can lead firms to underestimate the operational complexity and financial burden of building full overseas commercialization teams too early.
“In the early stages of globalization, borrowing a ship can be the most efficient and rational choice,” Liu said. “It allows companies to validate products in international markets, accumulate experience and generate cash flow, while avoiding unnecessary strain on resources.”
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