Fosun Pharma Strengthens Tumor Innovation Pipeline, Aims to Build Most Comprehensive Cell Therapy Portfolio in Zhangjiang

Sep 27, 2024 14:05 CST Updated 14:05

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 to 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 niche markets within the pharmaceutical field that have broad prospects.

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.

Build a Strong CAR-T Product Pipeline

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 difficult-to-cure 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 USD and is expected to exceed 37.42 billion USD 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 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 payment. After the transfer is completed, Fosun Pharmaceutical will hold 100% of Fosun Kite’s equity and intends to make an additional capital contribution of 10 million US dollars or an equivalent amount in RMB as the sole shareholder.

In addition to the 50% equity transfer portion of this transaction, Fosun Kite has also comprehensively revised and restated the original licensing agreement with Kite Pharma, reaching an "Amended and Restated Licensing Agreement." According to the licensing 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 restructuring and capital increase," revealed Zhang Wenjie. He noted that this equity transfer has provided Fosun Pharmaceutical and Fosun Kite with greater autonomy for independent development, enabling them to independently build the product portfolio of Fosun Kite Biotechnology in the future. 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 the cancer treatment field within mainland China and the Hong Kong and Macao regions but will also, through the restructuring, independently plan and establish a robust CAR-T product pipeline.

"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.

Plan to Extend to a Wider Range of Fields

Cell Therapy: A Strategic New Track for the Future of the Biomedical Industry

Zhang Wenjie believes that the cell therapy sector in China is still in the early stages of development, but it is a sunrise industry. "Although there are some challenges at present, the future development potential is enormous. Fosun Pharmaceutical remains firmly optimistic about this sector."

Currently, all CAR-T products that have been launched 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 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 exploring more innovative possibilities. In the area of innovative payment solutions, 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-cost innovative drugs in the country.Patients using the drug voluntarily join the program and undergo a PET-CT efficacy evaluation three months after receiving Yikaida. If they do not reach the complete remission (CR) status, half of their out-of-pocket expenses will be refunded (up to 600,000 yuan). Since the launch of this project on January 1, 2024, nearly 200 patients have enrolled. Chen Xingrong, CEO of Fosun Kite, said, "We are very pleased to see that among the patients evaluated under the Yikaida® Pay-for-Performance Program, the complete remission rate exceeds 58%, further strengthening the company's confidence in Yikaida® and its determination to promote innovative payment methods."

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).

Source: Pudong Release

Previous Review

[New Quality Productivity in Zhangjiang] Junshi Biosciences: 12 Years! From a Lab of Less Than 300 Square Meters to a Leader in Innovative Drugs

2024-09-13

Total Area Exceeds 20,000 Square Meters! Zhangjiang Science City Adds Jutong Headquarters Base, Relevant Project Under Public Notice →

2024-09-12

District Leaders Visit Humanoid Robotics Companies in Zhangjiang Science City for Research

2024-09-11