14 Major Out-Licensing and Collaboration Deals by Chinese Pharma Companies in H1 2024

Jul 02, 2024 08:29 CST Updated 08:30

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Unknowingly, half of 2024 has passed. According to incomplete statistics, as of the end of June, Chinese pharmaceutical companies have authorized/cooperated externally at least 14 times, with products involving ADCs, monoclonal antibodies, nucleic acid drugs, vaccines, GLP-1, etc. (Due to the positioning of the official account, small molecule drugs were not counted.）。

Figure 1 Source: Biopharmaceutical Era Compilation

From the perspective of cooperative/licensed product categories,ADC Products Dominate the Majority; followed by nucleic acid-based drugs. As can be seen from the figure, since the beginning of this year, there have been three outbound licensing projects for small nucleic acid drugs, with a total amount exceeding 6 billion US dollars, accounting for approximately 33% of the total outbound licensing/cooperation amount since the beginning of this year.

In terms of amount, the total value of licensing/cooperation deals by Chinese pharmaceutical companies in 2024H1 exceeded 18 billion US dollars, of whichSeven Deals Total Over $1 Billion, accounting for up to 50%.

Speaking of ADC, it is necessary to mention the flourishing situation of ADC external authorization in China from 2021 to June 2024. According to incomplete statistics,2021-2024.6，A Total of 29 ADC Licensing Deals, with a total transaction value of up to 40 billion US dollars. Among them, Kelun Pharmaceutical's subsidiaryKelun BiotechThe performance was particularly impressive, with three authorizations of nine ADC products to Merck, totaling over $118 billion in transaction value.

Figure 2 Source: Biopharmaceutical Era Compilation

In terms of targets, CLDN18.2 ADC is the most favored by foreign pharmaceutical companies; in terms of overseas expansion speed, there were only a few in 2021.Rongchang BioIn 2022, there were 6 instances involving 16 ADCs going overseas, and in 2023, there were 16 ADC overseas events. Thus, starting from 2022, ADC companies in China have掀起ed an "overseas" craze.

Argo & Novartis — $4.165 Billion

As can be seen from Figure 1, the largest outbound licensing deal for small nucleic acid drugs was the $4.165 billion collaboration between Argo and Novartis on siRNA drugs targeting cardiovascular diseases in January this year, which is also the highest amount in the history of small nucleic acid drug licensing transactions.

The first agreement states that Argo grants Novartis the exclusive global license for the development and commercialization of a Phase 1 project (BW-05) targeting cardiovascular diseases. Novartis will also obtain potential license options for compounds targeting up to two additional cardiovascular disease-related targets. The second agreement grants Novartis the exclusive license for the development and commercialization of a Phase 1/2a clinical-stage project (BW-02) for the treatment of cardiovascular diseases outside of Greater China.

Novartis is a global leader in the field of cardiovascular diseases and RNAi therapeutics. Argo Biopharma is committed to developing a new generation of siRNA drugs and has established a rich and differentiated siRNA candidate pipeline for various indications.

Argo Biopharma R&D Pipeline

RiboBio & BMS——$2 Billion

On January 3, Ribo Bio andBoehringer IngelheimCollaborate to leverage Argo's leading RIBO-GalSTARTM technology platform to jointly develop innovative small nucleic acid therapies for non-alcoholic or metabolic dysfunction-associated steatohepatitis (NASH).Total transaction amount exceeds $2 billion.

RiboBio is an innovative R&D company dedicated to developing small nucleic acid drugs. It is not only the only drug R&D company in China that currently possesses a full-technology-chain platform for small nucleic acid innovative drug development, but also a leading company in China's small nucleic acid pharmaceutical industry.

Ribo's leading RIBO-GalSTARTM technology platform can specifically target pathogenic genes in liver cells, selectively inhibit their mRNA, and thereby develop small nucleic acid therapeutic drugs. Small nucleic acid therapies have the potential to target sites that traditional drug molecules cannot reach, achieving the goal of treating corresponding diseases. This collaboration will closely integrate Ribo’s leading experience in early research and clinical development in the siRNA drug field with Boehringer Ingelheim's commitment to improving the quality of life for patients with cardiovascular, renal, and metabolic diseases.

Ribo Biotech R&D Pipeline

Yilian Bio & Roche —— $1.05 Billion

On January 2, Yilian Biologics announced a global collaboration and licensing agreement with Roche. The two parties will collaborate to develop the next-generation ADC product YL211 targeting Mesenchymal Epithelial Transition Factor (c-MET) for the treatment of solid tumors.

Under the terms of the agreement, Roche will obtain exclusive global rights for the development, manufacturing, and commercialization of YL211. Yilian Biotech will collaborate with Roche China Innovation Center (CICoR) to advance the YL211 project to Phase I clinical trials, after which Roche will take over further global development and commercialization. Roche will pay Yilian Biotech an upfront payment and near-term milestone payments totaling $50 million, along with potential development, regulatory, and commercial milestone payments of up to nearly $1 billion, as well as tiered royalties based on future global annual net sales.

In May this year, Yilian Biologics announced that the first subject had been dosed in the Phase 1 clinical trial of YL211 in the United States.

Yilian Bio R&D Pipeline

Yilian Bio & BioNTech——$1.825 billion

On May 27, Yilian Biologics granted BioNTech an exclusive option and corresponding global exclusive license to develop ADC products targeting a few cutting-edge innovative targets using Yilian's TMALIN® ADC technology platform.

According to the terms of the new agreement, Yilian Biologics will receive an upfront payment of $25 million and is eligible for up to $1.8 billion in development, regulatory, and commercialization milestone payments, as well as tiered royalties based on global annual net sales in the future.

As early as October 2023, Yilian Biotech entered into a strategic collaboration and global licensing agreement with BioNTech for YL202/BNT326, an ADC project targeting HER3.

Hengrui Medicine & Hercules——$6.035 Billion

On May 16, Hengrui Medicine announced that it had granted Hercules USA the exclusive rights to develop, manufacture, and commercialize its GLP-1 product portfolio, including HRS-7535, HRS9531, and HRS-4729, outside of Greater China. According to the agreement terms, Hercules will pay Hengrui Medicine an upfront payment and near-term milestone payments totaling $110 million, clinical development and regulatory milestone payments of up to $200 million, sales milestone payments of up to $5.725 billion, and royalties on actual annual net sales ranging from low single-digit to low double-digit percentages. The total value of the deal amounts to 6.035 billion yuan.

Hercules was founded in May 2024, with its business scope and main operations focused on biopharmaceutical development. Bain Capital Life Sciences, in collaboration with Atlas Ventures, RTW Capital, and Lyra Capital, jointly invested 400 million US dollars, holding 70.1% of the company's equity, and are responsible for the establishment and operation of Hercules.

In this transaction, one party provides funding and secures global licensing rights (excluding Greater China), while the other party contributes pipeline assets in exchange for equity and various payments. This deal structure pioneers a new model for overseas expansion and sets a new record for Hengrui Medicine's outbound transaction value. Additionally, the agreement is expected to expand the overseas market for Hengrui’s GLP-1 product portfolio, further enhancing the company’s innovative brand and international performance.

MabCare & Day One——$1.2 billion

On June 18, MabCare Therapeutics, an innovative drug company based in Shanghai, partnered with Day One Biopharmaceuticals on the innovative PTK7.ADC DrugsMTX-13 Reaches Exclusive Licensing Agreement, Total Deal Value Up to $1.2 Billion.

DAY301 is an innovative ADC targeting protein tyrosine kinase 7 (PTK7), which is highly expressed in esophageal cancer, ovarian cancer, lung cancer, and other cancers in adults.Endometrial CancerIt is overexpressed in pediatric neuroblastoma, rhabdomyosarcoma, and osteosarcoma. The product was approved by the FDA to enter clinical trials in April 2024. After Day One introduced this project, the drug was renamed "DAY301." In preclinical studies, DAY301 demonstrated favorable tumor-suppressive effects across various solid tumors.

Day One R&D Pipeline

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Progress in PDC Drug Development

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How to Use Linker Reforms to Overcome Challenges Like Toxicity and Drug Resistance in Traditional ADCs

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ADC Drug Development from the MIDD Perspective

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How Many Opportunities Remain for Global ADC Going Overseas?

Preliminary Confirmation of Guests

The ranking is not in any particular order and is arranged alphabetically by the initial letter of names from A to Z.

Cai Jiaqiang, CSO of Yilian Biotech

Fang Peng, Chairman of Nuoyu Pharmaceuticals

Cuihua Liu, Senior Vice President of Bio-Thera Solutions

Liu Yan, Chief Medical Officer, Midu Biotech

Ming Lü, Chairman of Shangjian Biotech

Qin Gang, Eddingpharm, CEO

Su Xia, Senior Director of Clinical Pharmacology & Quantitative Pharmacology at Pharmaron

Bo Dan, CEO of Brizgen

Shao Jun, COO of C Bridge Pharm

Tang Huadong, Partner, DeH Law Firm

Wang Zhongmin, Vice President of Akeso Biopharma

Mingde Xia, CEO of Innolake

Xi Ning, Founder & CEO of Argo

Tao Xu, CEO of SmartNuclide Biotech

Tongrui Pharmaceutical (Guest itinerary to be confirmed)

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