Mabwell Bioscience Announces Two Landmark BD Deals Totaling Over RMB 4.7 Billion

On June 26, Mabwell announced two major BD deals in its official release.

First, Mabwell has entered into an exclusive licensing agreement with Calico Life Sciences (hereinafter referred to as "Calico"), a subsidiary of Alphabet, the parent company of Google, for IL-11 targeted therapies, including the innovative monoclonal antibody drug 9MW3811 currently in Phase I clinical trials. Under the licensing agreement, Mabwell grants Calico exclusive rights to develop, manufacture, and commercialize 9MW3811 in all regions outside Greater China. Calico will pay Mabwell a one-time, non-refundable upfront payment of US$25 million (approximately RMB 180 million). In addition, Mabwell is eligible to receive additional milestone payments totaling up to US$571 million for near-term, development, regulatory, and commercial milestones, as well as tiered royalties based on net sales of the licensed product. (Total transaction value: US$596 million, approximately RMB 4.27 billion)

Secondly, Mabwell and its wholly-owned subsidiary Jiangsu T-mab Bio-Pharmaceuticals Co., Ltd. signed a "New Drug Project Technology Licensing Agreement" with Qilu Pharmaceutical for the marketed product Argatroban Alpha for Injection (brand name: Milestone®, product code: 8MW0511). According to the licensing agreement, Mabwell exclusively licenses Qilu Pharmaceutical the rights to develop, manufacture, improve, utilize, and commercialize the licensed product within Greater China (including mainland China, Hong Kong, Macao, and Taiwan). T-mab Bio-Pharmaceuticals can receive an aggregate maximum of 500 million RMB in upfront and sales milestone payments, as well as royalties of up to double-digit percentages of the net sales of the licensed product. Among these, Qilu Pharmaceutical will pay T-mab Bio-Pharmaceuticals a one-time, non-refundable upfront payment of 380 million RMB.

Two Major BD Deals Inject Approximately 560 Million Yuan of Immediate Cash Flow into Mabwell, with a Potential Total Value Exceeding 4.7 Billion Yuan.

The core of this transaction with Calico lies in the global value realization of the innovative drug 9MW3811. 9MW3811 is a humanized monoclonal antibody independently developed by Mabwell, targeting human interleukin-11 (IL-11). This drug can efficiently block the activation of downstream signaling pathways of IL-11, inhibit IL-11-induced pathophysiological functions, and thereby achieve therapeutic effects on fibrosis and tumors. Its unique mechanism can improve the tumor microenvironment and reverse immunotherapy resistance, making it a first-in-class (FIC) target drug.

Mabwell has evaluated the therapeutic potential of 9MW3811 in age-related disease areas during the preclinical research stage. Currently, 9MW3811 has completed Phase I clinical research conducted in China and Australia, and has been approved to commence Phase I clinical research in the United States.

IL-11 is an important inflammatory factor that plays a significant role in the occurrence and progression of fibrosis and tumors. Studies have shown that high expression of IL-11 is associated with the prognosis of various tumors such as lung cancer, liver cancer, and colorectal cancer. IL-11 not only promotes tumor cell growth through the STAT3 pathway but also has a crucial impact on immune cells in the tumor microenvironment. 9MW3811 effectively blocks the formation of the IL-11/IL-11Ra/gp130 trimer complex by binding to IL-11, thereby inhibiting the activation of downstream signaling pathways. 9MW3811 has demonstrated promising anti-tumor therapeutic effects in multiple preclinical efficacy models, especially when used in combination with anti-PD-1 antibodies, significantly promoting CD8+ T lymphocyte infiltration, improving the state of T-cell exhaustion caused by anti-PD-1 antibodies, and upregulating the secretion of cytotoxic cytokines, thus exhibiting better combined anti-tumor efficacy.

Calico's favor towards 9MW3811 not only endorses the scientific value of the molecule but also highlights its potential in age-related diseases such as organ fibrosis.

For Mabwell, choosing Calico as its partner also carries profound strategic considerations. Calico, co-founded by Alphabet and former Genentech CEO Dr. Arthur Levinson, focuses on aging and age-related disease research and has primarily collaborated with pharmaceutical giant AbbVie in the past.

Through this transaction, Mabwell not only secured nearly $600 million in funding but also leveraged Calico's international R&D resources to accelerate global development. At the same time, it transferred the high costs and risks associated with overseas markets, marking a qualitative shift in China's innovative drug exports from "biosimilars" to "globally first-in-class mechanism drugs."

Looking at the transaction with Qilu Pharmaceutical, it focuses on the value release of the marketed product "Mileven®" (8MW0511).

8MW0511 is an injectable recombinant (yeast-secreted) human serum albumin-human granulocyte colony-stimulating factor fusion protein. It is also a next-generation long-acting granulocyte colony-stimulating factor (G-CSF) independently developed by Mabwell. Using genetic engineering technology, highly active G-CSF is fused with human serum albumin (HSA). This product is the first drug in China to be approved and marketed that uses albumin long-acting fusion technology. Phase III clinical trial data for this product shows that its effect in reducing the risk of Grade 4 neutropenia is superior to competing products, with a maximum relative risk reduction of up to 68.4%. Additionally, its production process avoids complex chemical modifications, offering better uniformity and safety.

As a leading pharmaceutical company in China, Qilu Pharmaceutical is the optimal choice to drive the market penetration of "Milestone®" with its nationwide marketing network and deep commercialization experience. For Mabwell, this authorization not only brings an immediate cash inflow of 380 million yuan but also frees up resources for its self-operated team, enabling it to focus on core pipelines with greater growth potential, especially the ADC drugs in Phase III clinical trials (such as Nectin-4 ADC). This division of labor, where "Biotech focuses on R&D and Big Pharma leads commercialization," is becoming the mainstream choice for China's innovative pharmaceutical companies.

The simultaneous announcement of the two transactions is no coincidence. It represents not only an important step for Mabwell in transitioning from "R&D-driven" to "global value realization," but also a dual-track approach of overseas breakthroughs and local commercial synergy.

This synergy is first reflected in the dynamic balance of capital and risk. Through two licensing deals, the company received upfront payments totaling over 550 million yuan, not only transferring the risks associated with overseas development but also alleviating local commercialization pressures, allowing the company to further allocate resources towards innovative R&D. More importantly, it established a closed-loop of focused R&D and pipeline reinvestment.

Over the past few years, Mabwell has been plagued by a lack of funds. As of the end of the first quarter this year, Mabwell had 1.12 billion yuan in cash and 1.073 billion yuan in short-term borrowings, with a debt-to-asset ratio of 69.86%. The completion of this transaction, including the upfront payment and royalties from marketed products, will significantly ease Mabwell's financial burden and bring a steady cash flow. Moreover, the international monetization of its R&D value is also expected to trigger a market reevaluation of its pipeline assets.

Notably, alongside the BD announcement, there was also a share repurchase announcement. According to the announcement, Mabwell plans to repurchase some of its issued Renminbi ordinary shares (A-shares) through the Shanghai Stock Exchange trading system via centralized bidding. The total amount for this repurchase will be no less than RMB 25 million and no more than RMB 50 million. The price for this share repurchase will not exceed RMB 35 per share (the closing price on the 26th was RMB 23.85, representing a premium of 46.75%).

The repurchase amount is not large, but it fully demonstrates the management's confidence in the upside potential of the company's stock price.

In addition, Mabwell's core ADC pipeline has entered the registration clinical stage. Whether it can continuously leverage high-value BD to feed back into the R&D engine will be crucial for building a closed-loop feedback system and achieving a virtuous cycle of development.

Mabwell's strategy also reflects the leapfrogging path of China's biopharmaceutical industry: the overseas expansion of innovative drugs has transitioned from 1.0 biosimilars to 3.0 first-in-class mechanism drugs, while the local division of labor has deepened into a complementary coexistence between Biotech and Big Pharma. Mabwell's dual-track practice offers a replicable advanced pathway for the industry: realizing the value of cutting-edge pipelines through global licensing, while domestic giants tap the potential of mature products, forming a virtuous cycle of "R&D - value release - reinvestment in R&D."