On March 10, 2024, Biokin, a pharmaceutical company listed on the Sci-Tech Innovation Board, announced that it had received an $800 million upfront payment from Bristol-Myers Squibb for the development and commercialization license agreement of BL-B01D1.For the vast majority of Chinese innovative drug companies with relatively short histories, 800 million US dollars is an astronomical figure.
However, this innovative pharmaceutical company located in the southwestern corner of China, with a large-scale out-licensing deal, has directly achieved a single transaction income.
At the end of 2023, Biokin became the focus of the entire industry with a groundbreaking large-scale transaction.
On December 12, Biokin and Bristol-Myers Squibb reached an exclusive licensing and cooperation agreement on the BL-B01D1 project, with the latter making the payment.$800 million upfront payment, $500 million may be paid recently,And $7.1 billion in milestone payments，Potential total transaction value could reach up to 8.4 billion US dollars。This transaction,Set a New Record for the Highest Upfront Payment in China's Innovative Drug Export, making history.BL-B01D1 is a bispecific antibody-drug conjugate (ADC) that simultaneously targets EGFR and HER3, demonstrating efficacy signals across multiple epithelial tumor indications with a broad range of applications. Additionally, no bispecific ADC has been approved globally, positioning BL-B01D1 as a potential first-in-class drug with breakthrough efficacy, offering vast future market prospects.According to early clinical research data published by the company at the 2023 American Society of Clinical Oncology (ASCO) Annual Meeting, BL-B01D1 demonstrated promising anti-tumor activity in patients with non-small cell lung cancer and breast cancer whose disease had progressed after standard treatment.It is difficult for outsiders to accurately capture the motivation behind BMS's massive introduction of this drug. However, for Biokin, which had only more than 400 million yuan in cash on its books (Q3 2023 data), this deal is a game-changer.
When Biokin first landed on the STAR Market, the market was not optimistic about it.
The main reason is that the pipelines are too unconventional.For example, Biokin has three tetra-specific antibodies in its R&D pipeline: the CD3×4-1BB×PD-L1×CD19 tetra-specific antibody GNC-038, the CD3×4-1BB×PD-L1×EGFRvIII tetra-specific antibody GNC-039, and the CD3×4-1BB×PD-L1×ROR1 tetra-specific antibody GNC-035. All of these have currently entered Phase I clinical trials.Worldwide, the only tetra-specific antibody drugs that have entered clinical research are those from Biokin.
At the same time, Biokin's financial resources are not abundant, and whether it can support so many pipelines in advancing clinical research is also one of the concerns in the market.
In the first half of 2023, Biokin's operating revenue was 311 million yuan, mainly from the income of traditional chemical generic drugs and traditional Chinese medicine, representing a year-on-year increase of 2.06%. However, the net profit attributable to the shareholders of the listed company was -328 million yuan, significantly widening from -138 million yuan in the same period of 2022.But after this record-breaking BD deal, Biokin may not have to worry about money for a long time.
If the subsequent milestones of this BD deal proceed smoothly, considering the total transaction amount exceeding 8 billion US dollars, Biokin may become one of the wealthiest pharmaceutical companies in China.
In the New Year's speech of 2024, the founder of Biokin ambitiously stated: "Biokin Begins to Compete as a Strong Player in a Strong Field。”This is also the charm of the innovative drug industry: in an industry characterized by sporadic innovation, you never know when the next breakthrough will occur or even which field the next revolutionary innovation will emerge from. A single success by an obscure company has the potential to reshape the entire industry landscape.
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