Chengdu Emerges as a Global Hotspot for Big Pharma Acquisitions Amid Expanding Biopharma Magnetism

　　【Pharmaceutical Network Industry Dynamics】The vast pharmaceutical market overseas is attracting Chinese biopharmaceutical companies to expand internationally. As a key hub for the biopharmaceutical industry in western China, Chengdu is becoming a hotspot for international pharmaceutical leaders to seek opportunities.
 

On October 29, GlaxoSmithKline (GSK), a leading multinational pharmaceutical company, announced that it had reached an agreement with Chimagen Biosciences (referred to as "Chimagen") to acquire CMG1A46 from Chimagen for an upfront payment of $300 million. In addition, Chimagen will be eligible to receive additional payments totaling $550 million based on successful development and commercial milestones. The potential value of this deal could reach up to $850 million.
 

Data show that CMG1A46 is a clinical-stage tri-specific antibody targeting CD3/CD19/CD20. According to the agreement, GSK plans to develop and commercialize CMG1A46, focusing on B-cell-driven autoimmune diseases such as systemic lupus erythematosus (SLE) and lupus nephritis (LN), with the potential to expand to related autoimmune diseases.
 

On October 19, Novartis Group signed an exclusive licensing agreement with Chengdu-based Baiyu Pharmaceutical Co., Ltd. for a small molecule anti-cancer drug. According to the agreement, Baiyu will receive an upfront payment of $70 million, as well as milestone payments totaling up to $1.1 billion for development, registration, and commercialization, along with corresponding royalties.
 

Data shows that, in terms of new drug development, Bayyoo Pharma has multiple ongoing pipelines in the fields of oncology, DNA damage, inflammatory immunity, etc. Among them, BY1921 from Bayyoo Pharma is an oral small molecule inhibitor targeting PARP7, which has been approved by China's National Medical Products Administration (NMPA) and the U.S. Food and Drug Administration (FDA) for clinical trials. The drug is intended for research and treatment of various advanced solid tumors, with characteristics of specifically activating the tumor immune microenvironment, inducing anti-tumor immune response, and forming immune memory. BY1298 from Bayyoo Pharma is an oral small molecule inhibitor targeting DNA-PK, currently undergoing clinical trials in China for the treatment of malignant solid tumors, capable of enhancing the efficacy of radiotherapy, chemotherapy, and other DNA damaging agents (such as ADCs, RDCs, etc.).
 

Moreover, according to data statistics, prior to this, three pharmaceutical companies from Chengdu—Kelun Biotech, Baili Tianheng, and Conmen Biologics—successively set new records for China's ADC drug overseas licensing deals three times, with the total licensing transaction amount reaching $213.88 billion. For instance, on December 11, 2023, one of Baili Tianheng’s drugs was licensed to an overseas MNC (large multinational pharmaceutical company) for $84 billion. The relevant company will jointly carry out subsequent development and profit-sharing with its partner and has already received the first payment of $8 billion.
 

Industry insiders say that in recent years, Chengdu has increasingly showcased the innovative strength of domestically produced innovative drugs, whether in terms of product out-licensing, gaining market approval, or forming equity partnerships with multinational corporations (MNCs). For instance, in the first half of this year, two innovative drugs from Haisco Pharmaceutical gained approval — the neuropathic pain drug Clilagabalin Besylate Capsules (Simening) and the Type 2 diabetes treatment Cogrelitinib Tablets (Beichangping). In August 2024, Kelun-Biotech’s ADC product, Luskintuximab, had two indications for market approval (NDA) accepted by the National Medical Products Administration, bringing its commercialization in the Chinese market closer...
 

It is reported that in recent years, Chengdu has been focusing on developing the pharmaceuticals and health industry as a landmark sector, providing fertile ground for innovative drug companies. The "magnetic" effect of the biopharmaceutical industry continues to expand, leading to the emergence of more and more excellent enterprises and innovative achievements. With the support of several policies promoting the healthy development of private enterprises and encouraging innovation—such as the "Several Policies to Promote High-Quality Development of Chengdu’s Biomedical Industry" and the "Several Policy Measures to Support High-Quality Development of Manufacturing in Chengdu"—the planning and environment for the biomedical sector have become increasingly robust, significantly boosting companies' enthusiasm for innovation and entrepreneurship.
 

The industry says that as one of the most innovative and fast-growing strategic emerging industries, the biopharmaceuticals industry has fierce global competition and also holds unlimited possibilities. Chengdu, which continuously pushes for the high-quality development of the biopharmaceuticals industry, is accelerating towards the goal of a trillion-yuan biopharmaceuticals industry.
 

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.