Saizeng Medical receives $70M upfront from Yarrow for first-in-class TSHR antibody GenSci098

On the evening of January 15, Changchun High-Tech (stock code: 000661) announced that Shanghai Scizeng Medical Technology (Scizeng Medical), a subsidiary of its majority-owned subsidiary Changchun GeneScience Pharmaceutical (GenSci), has received a one-time, non-refundable, and non-creditable upfront payment of USD 70 million from Yarrow. This payment was made in accordance with the exclusive licensing agreement between Saizeng Medical and Yarrow for the GenSci098 injection project.

This collaboration was initially announced on December 16, 2025. According to the earlier announcement, Yarrow secured the exclusive global development, production, and commercialization rights for the GenSci098 injection outside of China, covering indications such as Thyroid Eye Disease (TED) and Graves' Disease (GD). Saizeng Medical retains the development and commercialization rights for the GenSci098 injection product within China.

Under the agreement, Saizeng Medical is expected to receive upfront and near-term development milestone payments totaling USD 120 million. This includes a non-refundable and non-creditable upfront payment of USD 70 million, followed by an additional USD 50 million in near-term development milestone payments. Saizeng Medical will also be eligible for milestone payments related to specific research and development, regulatory, and commercialization achievements. In total, Saizeng Medical is entitled to receive up to USD 1.365 billion in milestone payments from this exclusive licensing arrangement. Furthermore, following the product's market launch, Saizeng Medical will have the right to receive royalties exceeding 10% of net sales.

The collaborative partner in this project, Yarrow, is an emerging biopharmaceutical company based in New York, USA, founded and incubated by RTW. RTW is a globally renowned investment firm headquartered in New York, focusing on investments in the life sciences sector.

Interestingly, after finalizing the collaboration on December 16, Yarrow promptly announced a reverse merger with VYNE Therapeutics on December 17, completing a backdoor listing with the stock symbol "YARW". According to the merger agreement, shareholders of Yarrow are expected to own approximately 97% of the combined company, while shareholders of VYNE are expected to own approximately 3%.

The combined company is expected to operate under the name Yarrow Bioscience, trade on Nasdaq with the ticker "YARW", and focus on advancing YB-101 (GenSci098).

The partnered pipeline, GenSci098, is a humanized Thyroid-Stimulating Hormone Receptor (TSHR) antagonistic monoclonal antibody independently developed by GeneScience Pharmaceutical. It specifically binds to TSHR in thyroid or retro-orbital tissues, blocking its interaction with autoantibodies. This action inhibits the synthesis and release of thyroid hormones, suppresses thyroid cell proliferation, and prevents the release of hyaluronic acid and inflammatory factors. Consequently, it exerts therapeutic effects on hyperthyroidism while also improving exophthalmos (protrusion of the eyes).

According to a Wiseguy Reports research publication, the thyroid disease market size reached USD 4.36 billion in 2024 and is projected to grow to USD 7.45 billion by 2032. During the forecast period from 2025 to 2032, the compound annual growth rate (CAGR) for this market is estimated to be approximately 6.92%. More importantly, the prevalence of thyroid diseases is relatively evenly distributed across regions such as North America, Europe, and Asia-Pacific, with no significant geographical disparities. This enables clinical data from GenSci098 trials conducted concurrently in China and the United States to directly support regulatory approvals in multiple global markets, significantly reducing clinical translation costs during internationalization.

Previously, the GenSci098 injection received approval in August 2024 to initiate clinical trials for Thyroid Eye Disease (TED) simultaneously in China and the United States. Additionally, in October 2025, it obtained approval in China to commence clinical trials for Graves' Disease (GD).

Preclinical data for this pipeline, ongoing Phase I clinical studies for Thyroid Eye Disease (TED), and clinical data from other drugs targeting the same pathway indicate that GenSci098 has the potential to serve as a novel therapeutic approach for Graves' Disease. The relevant clinical trials can advance subsequent clinical development of this product for the Graves' Disease population. Phase Ib data for GenSci098 is expected to be announced in the second half of 2027.

Beyond the endocrine pipeline represented by GenSci098, Changchun High-Tech has in recent years established innovative pipelines across multiple therapeutic areas, including child health, women's health, endocrine metabolism/rheumatology and immunology, oncology, vaccines, and traditional Chinese medicine.

In the field of drug discovery and development, Changchun High-Tech has built several R&D and innovation technology platforms. These include a long-acting protein drug technology platform, an ADC (antibody-drug conjugate) drug technology platform, and an antibody discovery technology platform. Changchun High-Tech also integrates AI technology to cover various stages of innovative drug development, from design and screening to evaluation, process development, and formulation. Its subsidiary, GeneScience Pharmaceutical (GenSci), is among the few companies globally to possess three generations of growth hormone products: freeze-dried powder formulations, liquid injections, and long-acting liquid injections. Related products have currently received approvals for up to 12 indications and consistently maintain a leading position in terms of domestic market share in China. While continuing to serve pediatric growth disorders, GenSci is also driving innovation across multiple areas of child health, building comprehensive solutions that span early screening and monitoring to intervention and treatment.

In the vaccine sector, Changchun High-Tech leverages five core technology platforms: the "Virus Large-Scale Cultivation Technology Platform," "Formulation and Adjuvant Technology Platform," "Genetic Engineering Technology Platform," "Bacterial Vaccine Technology Platform," and "mRNA Vaccine Technology Platform." Changchun High-Tech implements project management strategies covering the entire lifecycle of pipeline candidates, spanning project planning, preclinical research, and clinical trial stages. Its subsidiary, BCHT Biotechnology, focuses on the R&D, production, and sales of biologics for infectious disease prevention and treatment. Its currently approved products include varicella vaccine, herpes zoster vaccine, and a nasal spray influenza vaccine.

Regarding the development of traditional Chinese medicine (TCM) innovation platforms, Changchun High-Tech has established the national-level "National-Local Joint Engineering Research Center for Ginseng Innovative Drug Development" and the provincial-level "Jilin Provincial Science and Technology Innovation Center for Cultivating Major TCM Varieties (Co-built by Provincial and Local Authorities)." Its subsidiary, Huakang Pharmaceutical, focuses on four major disease areas: cardiovascular and cerebrovascular diseases, TCM-based anti-inflammatory therapies, pediatrics, and orthopedics. Among its products, XueShuan XinMaiNing Tablets and YinHua MiYanLing Tablets, both listed in the national reimbursement drug list, hold a competitive edge in the TCM market and are currently the main products driving performance. Promising products like ShuQing Granules and QingWei ZhiTong Micro-Pills experienced significant increases in market usage after being included in the national reimbursement drug list in 2024. Sales of other products, such as KangXin Oral Liquid and XiaoEr JianWeiNing Oral Liquid, have also been rising year by year.

It is evident that in recent years, Changchun High-Tech has been rapidly increasing its R&D investment within its pharmaceutical innovation segment. Financial reports show that the company's R&D expenses grew from RMB 680 million the previous year to RMB 1.09 billion in 2021. This growth continued in subsequent years (RMB 1.66 billion in 2022, RMB 2.42 billion in 2023), reaching RMB 2.69 billion in 2024. The total R&D expenditure over these five years amounts to a substantial RMB 8.54 billion.

Following substantial R&D investment, Changchun High-Tech is gradually entering a validation phase for its innovative pipelines. Taking the progress of its subsidiary GenSci in 2025 as an example: In the autoimmune field, Firsekibart for Injection (brand name: Jinbeixin) was approved for the acute gouty arthritis indication. As one of China's first anti-IL-1β biologics, this marked a key breakthrough in a non-traditional core therapeutic area for the company. In the field of oncology supportive care, the nanocrystalline megestrol acetate product Megaxia® was approved for cancer-related anorexia-cachexia, addressing a treatment gap in this specific niche in China. Its core growth hormone business continues to advance through technological iterations and indication expansion, further solidifying its market advantage.

However, most of GenSci's current innovative pipelines are still in the R&D stage, with a certain distance to go before commercialization. During the earnings conference call for the 2025 interim report, Changchun High-Tech's management disclosed that GenSci plans to file 10 to 15 IND applications annually from 2025 to 2030. The target for overseas licensing revenue by 2030 is set between RMB 5 billion and RMB 8 billion. By that time, GenSci is expected to truly enter an era driven by R&D innovation.