One year after its inauguration, Bayer's innovation engine in China — Bayer Co.Lab — recently announced two key developments: First, the establishment of Bayer Co.Lab AdVenture, a global-first platform connecting venture capital (VC) institutions that was launched initially in Shanghai, China; Second, the addition of two Chinese biotech startups — Nutshell Therapeutics and OTR Therapeutics — to further expand the platform's network within China's innovation ecosystem.

These developments not only mark milestones in the growth of Bayer Co.Lab Shanghai but also demonstrate Bayer's recognition of the global potential of Chinese innovation. Through concrete actions, Bayer is advancing its open innovation strategy in China to new heights, fulfilling its long-term vision of rooted in China, connected to the world.

On this occasion, PharmCube interviewed Friedemann Janus, PhD, Senior Vice President and Global Head of Bayer Co.Lab, Regional Business Development & Licensing and Divestitures at Bayer | Pharmaceuticals. Through the launch of Bayer Co.Lab AdVenture, we gain insight into the future of global biopharmaceutical industry collaboration amid the explosive growth of innovative drugs in China.

Establishing a Venture Alliance to Further Upgrade the Innovation Ecosystem

Bayer Co.Lab celebrated its first anniversary with multiple significant achievements, the most notable being the launch of the Bayer Co.Lab AdVenture to help resident companies connect with internationally leading VC and private equity institutions.
The venture alliance also simultaneously announced its first batch of partners: SIIC Capital, Legend Capital君联资本, IDG Capital and Kangjun Capital. These four investment institutions will leverage international perspectives and local operations to provide resident companies with professional insights and investment opportunities.
Janus stated that Bayer Co.Lab launched the venture alliance precisely because they recognised the financing challenges currently faced by global biopharmaceutical startups worldwide.
According to PharmCube database statistics, in the first half of 2025 there were 447 global innovative drug primary market financing events, a year-on-year (YoY) decrease of 9.3%, with total financing amount dropping 2.6% YoY to USD 16.72 billion.
«Regarding financing issues, our discussions in Germany and China are almost identical, showing this is truly a global challenge. Financing is difficult, and high-quality investments with industry insights and foresight are even more rare. This is precisely why we carefully selected an investor network and launched the venture alliance — we want to bring investor resources closer to resident companies and look forward to seeing tangible results», said Janus.
The Co.Lab in Shanghai serves as the global pilot for Bayer's initiative. Janus indicated that the Bayer Co.Lab AdVenture will not stop at Shanghai; after gaining experience, it will expand to other regions to establish a tailored and differentiated support systems across four major global areas.

Companies joining Bayer Co.Lab not only receive resource support to accelerate R&D but also brand endorsement from a multinational pharmaceutical company, which inherently facilitates financing. Among the five biotechs already residing in Bayer Co.Lab, two — AccurEdit Therapeutics and Epigenic Therapeutics — recently completed USD 75 million Series A financing and USD 60 million Series B financing rounds respectively.

In the future, formally integrating VC players like Bayer Co.Lab into the ecosystem through the venture alliance will not only help resident companies connect local resources with global collaboration networks but also introduce more sustainable momentum. This will deeply embed the local ecosystem composed of VC institutions, biopharmaceutical startups and leading pharmaceutical companies into this global innovation network.
As Janus stated: «Bayer Co.Lab is committed to building a cluster in China covering diverse technology platforms and cutting-edge innovation, and the launch of the venture alliance marks a comprehensive upgrade of this co-creation ecosystem».
Janus also expressed anticipation for future collaborations with more Chinese partners to expand their footprint in the country and further realise Bayer Co.Lab's original intention — helping startups turn creative ideas into reality.

A Resource Network Enabling Local-Global Dialogue

It is evident that the resident companies are not merely seed players in Bayer's innovation portfolio but also key nodes connecting its global innovation network. On its first anniversary, Bayer Co.Lab welcomed two additional biotechs—Nutshell Therapeutics and OTR Therapeutics. Nutshell is dedicated to developing small-molecule drugs for traditionally undruggable targets using its self-developed artificial intelligence platform, while OTR employs a dual-driven model of 'in-licensing + self-development' aimed at transforming early-stage innovations into clinical candidates with global impact.
To date, Bayer Co.Lab has partnered with seven biopharmaceutical startups in China, forming an innovation cluster that encompasses cutting-edge technologies across fields such as small molecules, nucleic acid drugs, cyclic peptide drugs, antibody platforms, gene editing and AI drug discovery.
Janus outlined the criteria for selecting resident companies: «We first ask: Is the research direction sufficiently cutting-edge? Is it truly breakthrough innovation? If successful, does it align with local development needs?».
Janus explained that the key checkpoint for entering Bayer Co.Lab is the review by its global professional committee. Biotech and pharmaceutical companies can pitch to scientists on the committee and receive feedback. This global standard brings truly impactful innovative enterprises, forming a worldwide network integrating scientific validation, financing and industrial resources.
Local innovation, global validation, network mobility —joining Bayer Co.Lab means directly participating in the global dialogue on biopharmaceutical innovation.
«Our resident companies do not necessarily develop first in China and then go global; instead, they possess a global perspective from the outset and find a practical springboard within the global Co.Lab system», Janus illustrated. «For example, the founder of an innovative drug company in Shanghai can directly connect with scientists and venture capitalists in the US through Co.Lab's resource network. Similarly, a US biopharmaceutical company seeking to conduct clinical trials in China can also achieve this through the same network».
As a member of one of Bayer's first resident companies, Dr. Jiwei Zhang, Founder, Chairman and CEO of Immunocan, deeply resonates with this: «From participating in collaborative exploration of Bayer's global R&D pipeline to being invited to international industry conferences including the J.P. Morgan Healthcare Conference, since joining Bayer Co.Lab Immunocan has not only received resource support from Bayer's global innovation ecosystem but also gained direct access to its global R&D and collaboration network. This is a substantial support and acceleration channel for us to connect with international cutting-edge innovation forces and transformation opportunities».

Bayer's Long-Term Planning After the Business Development Frenzy

The year Bayer Co.Lab Shanghai was unveiled also marked a year of frenzied business development (BD) deals for Chinese innovative drugs. In the process of China's biopharmaceutical industry transforming from innovation follower to source through BD transactions, Big Pharma's buying power is the main driving force.
PharmCube's report From Reliance to Defiance: A Decade-Long Panorama of China's Innovative Drug Transactions points out that leading multinational pharmaceutical companies are the primary contributors to global blockbuster pharmaceutical deals, with in-licensing transactions being particularly active in recent years. Since 2021, the total value of in-licensing deals for Chinese projects has remained above USD 110 billion. Meanwhile, by 2024, China has become the second-largest source of assets for top pharmas.
Bayer has not been absent in this industry wave where the world stage welcomes Chinese innovative drugs.
In March this year, Bayer announced the in-licensing from Puhe Biopharma of an oral small-molecule PRMT5 inhibitor selectively targeting MTAP-deficient tumours, which received clinical approval in China in August.
In June, Bayer extended its collaboration agreement with Tsinghua University to continue accelerating drug research and development in China. The cooperation focuses in oncology, cardiovascular and renal diseases, neurology, rare diseases, immunology, as well as drug discovery and development, once again leveraging its industrial strength to support China's innovation through industry-academia-research collaboration.
Regarding collaboration with Bayer Co.Lab resident companies, Janus stated: «These companies are indeed of interest to us, but from a BD perspective, we are looking for companies that are highly strategically aligned with Bayer. Additionally, most resident companies are still at a very early stage with insufficient data. We are willing to assist these companies in complementing missing data and components, but we will not interfere with their operations. Instead, we fully support them in conducting their own R&D, collaborating with an open and collaborative mindset».
It is worth mentioning that Bayer does not intend to stop at BD transactions or equity investments but aims to demonstrate greater ambition through Bayer Co.Lab — truly helping companies achieve overseas operations and business expansion.
In summary, whether through BD transactions, equity investments or more diverse resource connections, collaboration has become the lifeblood of global biopharmaceutical industry development, and partnering with Chinese innovation has become key to seizing future development opportunities. As Janus emphasised: «Collaboration is crucial for driving pharmaceutical innovation. China has become an important partner for us in innovation. Bayer hopes to promote more Chinese innovations to the world through continuous open collaboration, supporting the sustainable development of the pharmaceutical industry».