While the myelodysplastic syndrome trial news seems unlikely to read through to other programs, MDS may have been the drug’s biggest market.

A slew of high-level executives has established biotech startups in China with a single focus on CNS conditions. Emerging collaboration and funding flow highlights a heating up market, but insiders tell Scrip that choppy waters and an uncertain future may be looming.

Two bioventures in China have jettisoned immuno-oncology assets, including PD-1/L1- and CD47-targeting agents, while four other firms have disclosed shifts in R&D priorities and employee lay-offs as they deal with challenging conditions.

The latest surveillance balloon downing could torpedo improving bilateral health collaboration between China and the US at a time when warming ties are crucial to solving a flurry of gridlocks.