This article only represents the author's own views.

Last year dished up some tough medicine for publicly traded Chinese biotechs. Some unprofitable innovative drug makers managed to list, only to see their shares wilt, making it difficult to raise further funds. But as the year ended, a landmark deal that will see innovative drug maker Gracell Biotechnologies Inc. (GRCL.US) acquired by European drug major AstraZeneca (AZN.L) could point the way forward for some of these struggling companies.

Gracell is the first Chinese biotech to be acquired by a multinational pharmaceutical company, part of a broader cross-border boom for pharmaceutical M&A. The deal offers hope that some of the dozens of other cash-challenged, publicly traded Chinese companies could reach similar deals, providing attractive exits for their investors.