The "NewCo" model, where a new company is formed around assets licensed from an existing firm, is a key strategy for Western investors to access a deep well of innovation from Chinese companies like Heisco, which are largely unknown in the West but possess broad, innovative pipelines.

Forbion identified an arbitrage: promising biotech assets in China whose originators lacked global development expertise. Their strategy is to create new Western companies, in-license these assets, and install an experienced team to unlock their "rest of world" value, a model proven by a billion-dollar exit.

A new "Holdco" business model is emerging where Chinese firms act as holding companies. Instead of focusing on one or two internal assets, they leverage their region's discovery and development efficiency to build and accelerate a diverse portfolio of assets sourced from both within China and around the world.

To capitalize on promising Chinese biotech assets while mitigating risks in IP and manufacturing (CMC), investors are creating new US-based companies ("NewCos"). This structure allows an experienced US leadership team and board to guide the asset's development to meet global regulatory standards.

Japan's biotech ecosystem is evolving with a new, successful model for creating cross-border companies. US venture firms are partnering with Japanese academia, combining American management expertise and capital with Japan's strong science and cost-effective R&D to build globally competitive biotechs from their inception.

The 'NewCo' model, which creates a Western company around in-licensed Asian assets, is now leveraging reverse mergers for a fast track to public markets. Slate Medicines' deal with Fulcrum Therapeutics exemplifies this trend, following similar moves by companies like Yarrow and Serapha, shortening the path from inception to public listing.

The acquisition of Oro highlights the success of the "NUCO" model, where Chinese biotechs like KeyMed spin out assets into new companies. These NUCOs are backed by Western VCs specifically to achieve global development and a lucrative exit, creating a repeatable pathway for Asian science to reach Western markets.

Enviva employs a bifurcated global strategy. It leverages China's efficient talent pool and rapid clinical trial system for early discovery and proof-of-concept. It then shifts to the US and Europe for full-scale manufacturing and late-stage clinical development to gain "golden standard" regulatory approval and global market access.

Venture capital is shifting towards creating new companies from multiple de-risked assets acquired from large pharma. Bain's $300M investment to build a company around five BMS assets, led by a proven CEO, exemplifies this strategy. It mirrors previous successes like SpringWorks and minimizes single-asset failure risk.