by CHEN Yang

Chinese vaccine makers are turning to licensing deals to expand overseas, as slowing demand, falling birth rates and intensifying competition weigh on growth at home.

On March 13, Walvax Biotechnology Co., Ltd., an established vaccine exporter, said it had reached a strategic agreement with Ab&B Bio-Tech Co., Ltd., a loss-making Hong Kong-listed vaccine developer, to develop overseas markets. Under the deal, Walvax's wholly owned unit Walvax Hong Kong will serve as the exclusive partner for the overseas commercialization of Ab&B's trivalent influenza subunit vaccine, handling registration, marketing and sales in designated regions excluding the Philippines and China's Macao SAR.

The agreement will run for seven years and can be terminated by either party if no regional sub-agreements are reached within one year. Walvax said the deal is preliminary and is not expected to materially affect near-term earnings.

The partnership builds on an earlier licensing deal signed in December 2024, when Ab&B granted Walvax overseas distribution rights for its quadrivalent influenza vaccine. The newly approved trivalent vaccine — cleared in China in January 2026 for people aged six months and above — extends that cooperation and broadens both companies' influenza portfolios in overseas markets.

The move reflects a broader push by Chinese vaccine makers into global markets to offset domestic headwinds. However, overseas expansion remains complex, as many countries require local manufacturing or technology transfer as part of procurement, limiting reliance on simple export models.

Founded in 2015 and listed in Hong Kong in August 2025, Ab&B Bio-Tech remains loss-making. The company reported revenue of 284 million yuan in 2024 and a net loss of 259 million yuan. It expects 2025 revenue to rise to 446 million yuan–493 million yuan, while losses are projected to narrow to 157 million yuan–197 million yuan.

Its core products include a quadrivalent influenza subunit vaccine and a rabies vaccine. The quadrivalent flu shot, approved in 2023, is currently the only subunit vaccine in China covering all age groups. Subunit vaccines are generally seen as safer than split vaccines and tend to command higher prices, though the flu vaccine segment remains crowded.

For Walvax, the deal reinforces an overseas strategy that has become increasingly important. The company has exported vaccines to 24 countries and regions, with cumulative shipments exceeding 63 million doses. Overseas revenue accounted for about 20% of total sales, higher than most domestic peers, and is expected to continue growing.

Investor reaction was mixed. Shares of Walvax rose 1.82% to Rmb12.28 on March 16, while Ab&B Bio-Tech fell nearly 20% to HK$46, reflecting differing expectations over the partnership's near-term impact.

Walvax expects 2025 net profit of 160 million yuan–190 million yuan on revenue of about 2.4 billion yuan, as overseas expansion helps offset softer domestic demand, where vaccine sales have declined but are beginning to stabilize.