Eisai to Permanently Shut Down Oncology Subsidiary H3 Biomedicine

　　【Pharmaceutical Network Industry Dynamics】Against the backdrop of the ongoing pandemic impact, industry transformation and intensified competition, as well as the arrival of patent barriers for many blockbuster drugs, the pharmaceutical industry's adjustment has entered a deep-water period. At present, in order to avoid the pain of the adjustment period and strive for more development opportunities, pharmaceutical companies both in and outside China are constantly accelerating innovation. Amidst this wave of innovation, anti-tumor drugs have clearly become one of the key areas that numerous pharmaceutical enterprises are competing for. Especially in recent years, with the continuous growth of the anti-tumor drug market size, pharmaceutical companies both inside and outside China have successively started to accelerate their strategic layout in this field.
 

At the end of May this year, Bayer announced the establishment of an Oncology Business Unit in China, headed by Han Shuang. It will operate independently starting from June 1, directly reporting to Zhou Xiaolan, Executive Vice President of Bayer’s Prescription Pharmaceuticals Division and President of Bayer China. Additionally, at the 2022 Global Media Day for prescription drugs, Bayer set a strategic goal to “strive to rank among the top 10 global oncology businesses by 2030.”
 

Currently, companies in China are also increasing their efforts in the field of oncology drugs. For instance, BeiGene has recruited Zhu Jingyan, the former head of the Hematology Oncology Division at Xi'an Janssen; while Zou Jianjun, the former Chief Medical Officer of Hengrui Medicine, has moved to Junshi Biosciences… With more companies entering the field, new achievements are constantly emerging. Recently, the national launch event for Cadonilimab Injection (brand name: Katanine®), a bispecific antibody drug that acts as a dual immune checkpoint inhibitor developed independently by Akeso Biopharma for the treatment of patients with recurrent or metastatic cervical cancer who have failed previous platinum-based chemotherapy, was held in Huangpu District, Guangzhou City.
 

Notably, amid the oncology drug R&D boom, some pharmaceutical companies have opted to shut down their oncology-focused subsidiaries. Recently, Eisai announced plans to permanently close its oncology subsidiary, H3 Biomedicine Inc., which will result in layoffs for 88 employees, with 79 expected to be laid off by September 15. Eisai stated that H3’s operations will be transferred to DHBL (Deep Human Biology Learning organization).
 

Data shows that H3 Biomedicine, established in 2010 and located in Cambridge, Massachusetts, U.S., focuses on the discovery and development of precision oncology treatments. In an email, Eisai stated that closing H3 was a difficult decision: "Since its establishment in 2010, H3 has been an important platform for innovative discoveries and a development engine. It has submitted four INDs, signed two licensing agreements, and completed the clinical validation of the H3B-6545 concept."
 

Regarding Eisai's decision to downsize its oncology team, industry insiders believe that it is unlikely for Eisai to abandon its entire oncology portfolio. The structural adjustment may be driven by multiple factors. After all, Eisai’s statement never clarified the fate of specific projects. Therefore, even if some subsidiaries and R&D organizations are closed, it does not mean that the R&D pipelines of these subsidiaries are abandoned. It is highly possible that the projects will be integrated into other organizational structures.
 

According to reports, in April this year, Novartis Global announced the integration of the two major business departments of pharmaceuticals and oncology, forming the Innovative Medicines division. It is understood that the fields of Novartis' pharmaceuticals and oncology departments have increasingly overlapped, leading to unnecessary waste in the company’s R&D and operations, hence the merger.
 

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.