Fosun Pharma to Build World-Class Cell Therapy Pipeline in Shanghai, Strengthening Oncology Innovation
Fosun Pharmaceutical
Healthcare Industry Group
Fosun Kairos
Developer of Tumor Immune Cell Therapy Technologies and Products
"Cell therapy brings a paradigm revolution, offering hope of a cure for cancer patients. The first marketed cell therapy product, Yikaida®, is a great example. Cell therapy is a key focus for Fosun Pharmaceutical's future development." In a recent interview with Zhang Wenjie, Executive President of Fosun Pharmaceutical and Chairman of Fosun Kite, he stated that Fosun Pharmaceutical is concentrating on promising niche markets within the pharmaceutical field.
Earlier this month, Fosun Pharmaceutical announced that it would acquire full ownership of Fosun Kite. Fosun Kite is planning to rename itself as Fosun Kite Biotechnology Co., Ltd., and will serve as Fosun Pharmaceutical's core platform in the field of cell therapy technology, continuing to focus on the area of cancer immunotherapy. It is reported that Fosun Kite, located in Pudong, is planning to build the most powerful and comprehensive cell therapy pipeline in China and even globally.
In recent years, with the success of CAR-T cell therapy and the advancement of stem cell treatment, cell therapy has gradually moved towards clinical applications, bringing hope to many previously incurable diseases. According to data from market research and consulting firm Nova One Advisor, in 2023, the global cell therapy market size reached 4.85 billion U.S. dollars and is expected to exceed 37.42 billion U.S. dollars by 2033, with a compound annual growth rate of 22.67% over the next decade, indicating steady market expansion. In 2023, the market size of China's cell-based healthcare industry was 14.2 billion yuan, and it is projected to reach 174.5 billion yuan by 2032, with a compound annual growth rate of 32.1% from 2023 to 2032.
Fosun Kite is a joint venture established in 2017 by Fosun Pharmaceutical and Kite Pharma (a subsidiary of Gilead Sciences), located in Zhangjiang, Pudong. Since its establishment, Fosun Kite has been committed to advancing the accessibility and affordability of CAR-T products. Yikai Da® (Axicabtagene Ciloleucel Injection), as the first CAR-T product approved for marketing in China, has benefited more than 700 patients with relapsed/refractory large B-cell lymphoma.
According to the latest announcement: After this transaction, Fosun Kite is about to enter a brand-new stage of development. Fosun Pharmaceutical's holding subsidiary, Fosun Pharmaceutical Industry, plans to acquire 50% of Fosun Kite's equity held by Kite Pharma through a cash investment. After the transfer is completed, Fosun Pharmaceutical will hold 100% of Fosun Kite's equity and intends to invest an additional 10 million US dollars or equivalent RMB in cash as the sole shareholder to increase Fosun Kite’s capital.
In addition to the 50% equity transfer portion of this transaction, Fosun Kite has also comprehensively revised and restated the original license agreement with Kite Pharma, reaching an "Amended and Restated License Agreement." According to the license agreement, Fosun Kite should pay Kite Pharma up to 35 million U.S. dollars in milestones. Meanwhile, for the annual net sales of all licensed products within the licensed territory, Fosun Kite will pay Kite Pharma royalties at varying rates of 7%-13%.
"Currently, Fosun Kite holds a leading position in China's cell therapy market. We sincerely hope that through this transaction, we can further develop Fosun Kite’s, or the future Fosun Kite Biotechnology’s, own pipeline and seize new growth opportunities through this recapitalization and restructuring," Zhang Wenjie revealed. This equity transfer has provided Fosun Pharmaceutical and Fosun Kite with greater autonomy for future development, enabling them to independently build the product portfolio of Fosun Kite Biotechnology. The company will not only continue to hold exclusive rights to develop, manufacture, and commercialize Yikaida® and Brexu-Cel (FKC889, an R&D project by Fosun Kite) in cancer treatment across China, including Hong Kong and Macau, but also independently plan and construct a robust CAR-T product pipeline through the restructuring.
"For Fosun Kite, a very important focus moving forward is to rapidly build the most powerful and comprehensive cell therapy pipeline in China and even globally," Zhang Wenjie further stated.
Cell Therapy: A Strategic New Track in the Future of the Biomedical Industry
Zhang Wenjie believes that the cell therapy track in China is still in the early stage of development, but it is a sunrise industry. "Although there are some challenges at present, the future development space is huge. Fosun Pharmaceutical firmly believes in this track."
Currently, all CAR-T products that have been marketed in China are focused on the field of hematological tumors. It is reported that after Fosun Pharmaceutical fully controls Fosun Kite, it plans to venture into broader areas such as solid tumors and autoimmune diseases for research and development exploration. "Hematological tumors are just the first stage or step in the overall development of cell therapy. In the field of solid tumors and even broader areas like autoimmune diseases, we have already seen very promising signals and initial clinical data. Therefore, in these therapeutic areas, Fosun Kite will definitely be actively involved," said Zhang Wenjie.
As a pioneer in China's CAR-T field, Fosun Kite is committed to advancing the paradigm shift in treatment and developing more innovative possibilities. In the area of innovative payment models, Fosun Kite has also introduced the first-of-its-kind Yikaida® value-based payment plan in China, paving a new path for the payment model of high-value innovative drugs in the country.Patients who voluntarily join the program and undergo PET-CT efficacy evaluation 3 months after receiving Yikaida infusion, if not reaching complete remission (CR), will be refunded half of their out-of-pocket expenses (up to 600,000 yuan).Since the project was launched on January 1, 2024, nearly 200 patients have been enrolled.Fosun Kite CEO Stella Chen said, "We are very pleased to see that in the current Yikai Da® value-based payment program, the complete response rate among patients who have completed efficacy evaluation exceeds 58%, further strengthening the company's confidence in Yikai Da® and determination to promote innovative payment solutions."”
It is reported that the clinical trial application for the third indication of Axicabtagene Ciloleucel Injection has been approved in China, targeting adult patients with relapsed/refractory indolent non-Hodgkin lymphoma (r/r iNHL, including follicular lymphoma and marginal zone lymphoma).
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