VelaVigo Secures Over $1 Billion in BD Deals Within Six Months: A Deep Dive into Its Global Pipeline Strategy

On April 18, VelaVigo and Ollin Biosciences announced a collaboration regardingSelf-developed First-in-Class (FIC) Bispecific Antibody Drug VBS-102Reached a global exclusive licensing agreement. Ollin will obtain the rights for global development, manufacturing, and commercialization of the drug outside the Greater China region. OrangeSail Pharma retains the rights in the Greater China region and receivesTotal transaction value of up to $440 millionpayment, and willAcquire a partial equity stake in Ollin.

In November, OrangeSail Pharma and Avenzo Therapeutics entered into a global exclusive licensing agreement for a Nectin4/TROP2 bispecific antibody-drug conjugate.The total transaction amount reached $800 million.In December, Orange Sail Pharma completed a $50 million Pre-A financing round, bringing its cumulative funding to $100 million since its establishment in 2021.

Meanwhile, driven by the dual-engine model of “in-house R&D + global collaboration,” OrangeSail Pharma’s core pipeline features first-in-class (FIC)/best-in-class (BIC) bispecific antibody-drug conjugates (ADCs).Preparing to submit IND applications in China and the US, advancing to the clinical stageAdditionally, five novel first-in-class (FIC) or best-in-class (BIC) innovative molecules will be presented at global industry conferences such as AACR and PEGS.

In just six months, how did this Chinese biotech company, focused on the development of multispecific antibodies and antibody-drug conjugates (ADCs), consecutively secure business development (BD) deals worth over $1 billion? Against the backdrop of BD models combining cash and equity configurations, as well as a seasoned team of innovative drug executives, how are Chinese biotechs expanding their global reach and selecting synergistic partners? In particular, with core pipelines poised to enter clinical trials, how are biotechs adjusting resource allocation and broadening their asset portfolios to adapt to this new stage of development?

This week, VCBeat conducted an exclusive interview with Dr. Li Jing, Founder and CEO of Orange Sail Pharma, and Dr. Zhang Tong, Co-founder and CBO/CFO, to gain firsthand insights into business development (BD) and global expansion strategies for Chinese biotech companies.

VCBeat: This collaboration with Ollin involves an undisclosed equity partnership. Does this imply that the transaction has the characteristics of a Newco?

Dr. Tong Zhang:This marks Orange Sail’s foray into business development (BD), structuring the deal to include not only cash consideration but also an equity stake in the partner company. This approach is driven by two key factors: first, Ollin Biosciences has been operational for over a year, with a relatively mature team and organizational structure; second, VBS-102, as their second in-licensed product, holds a strategic position within their pipeline. Therefore, based on confidence in VBS-102, acquiring equity at Ollin’s current relatively low valuation may yield Orange Sail greater returns in the future than cash payments alone.From Ollin’s perspective, cash flow is a precious resource for any biotech company. Using a portion of equity value as bargaining chips in a transaction represents a mutually beneficial approach to collaboration.

Dr. Li Jing:From Orange Sail’s strategic perspective, given the favorable conditions of ongoing financing and business development (BD) activities that continue to generate healthy cash flow, we can explore more flexible transaction models.For instance, previous pure-cash licensing deals with Avenzo, as well as co-development or joint venture structures involving equity plus cash, can even be referred to as a “Newco” when the equity stake reaches a certain threshold. In essence, however, these models are not new to the U.S. market; they differ little in nature and can be described as time-tested forms of collaboration.

Overall, earlier intervention in the drug development pipeline has become a prevailing trend in the industry. As stakeholders increasingly recognize the value of innovation, particularly in the current era of explosive growth in biotechnology, mergers and acquisitions in the overseas healthcare sector are vibrant, leaving ample room for imagination and strategic expansion within the pharmaceutical industry.

VCBeat: What criteria does OrangeSail Pharma use when selecting buyers?

Dr. Li Jing:Which projects to select and with whom to collaborate,It is not as complicated as the market thinks.The logic is straightforward: 1+1>2, creating synergistic advantages.Otherwise, collaborations without added value are meaningless. For instance, in clinical collaborations, we conduct a comprehensive assessment of the partner’s clinical development capabilities, track record and past achievements, as well as their underlying investors and financial status. Business development (BD) is akin to an investment; when we entrust our “baby” (asset/project) to them, we need to see that they truly have the capability to elevate it to new heights.

Dr. Zhang Tong:The bilateral selection with buyers is determined by Orange Sail’s stage of development. The counterparties in the transactions involving Ollin and Avenzo are experienced management teams with established clinical and commercialization footprints; their capabilities are primarily reflected in their ability to create value for early-stage assets through clinical development.This late-stage development capability complements OrangeSail’s current strength in translating innovative concepts into drug molecules with clinical potential.Of course, their fundraising and clinical capabilities have also honed their keen eye for investment, resulting in relatively stringent validation of early-stage molecules’ innovativeness (FIC/BIC), quality testing, and preclinical data.

However, starting next year, we plan to advance Investigational New Drug (IND) applications for our core pipeline in both China and the United States, to further validate the maximized value of our platform and pipeline. Therefore, upon entering the clinical stage, collaboration with multinational corporations (MNCs) and large pharmaceutical companies will become another key strategic direction for OrangeSail.

VCBeat: For domestic biotech companies, what is the essence of business development (BD)? What do they hope to gain most from it?

Dr. Zhang Tong:Continuing from the previous topic, biotech companies of different types and at different stages have varying needs. At Orange Sail’s current stage,Cash flow and industry recognition are relatively important.In the absence of a clear exit path in the market, we believe that business development (BD) is paramount—overseas teams of high caliber are willing to invest heavily in the development of your products. Therefore,The First Deal Is the Most Difficult and Important, which means that our technical platform and development capabilities have been recognized by the industry. Meanwhile, weWithin just over 40 days after the announcement of its first BD deal, Orange Sail efficiently closed its Pre-A financing round.The driving effect on the company's development is very obvious.

Once clinical trials are initiated in the future, our priorities may shift, such as pursuing co-development partnerships with multinational corporations (MNCs).On one hand, we can leverage MNC resources to jointly drive product development and strengthen Orange Sail’s in-house clinical team. On the other hand, this approach allows us to retain a significant portion of our cash flow for allocation across various future strategic initiatives.

VCBeat: How Can a Young Biotech Gain Visibility and Trust?

Dr. Li Jing:“Aromatic wine needs no bush.” First and foremost, the “wine” itself must be aromatic; we must deliver high-quality products through systematic platform innovation and a systematic pipeline layout. This is the most critical foundation for attracting overseas partners. Meanwhile, given that the “alley is deep,” we must also strategize on market promotion and building deep connections to effectively penetrate the market and attract more partners to collaborate with us as soon as possible.High-quality capabilities and early collaboration—both are indispensable.

Dr. Zhang Tong:Business development, much like constructing a venue, involves an extensive process of preparation and foundation-building. During the first two years after Orange Sail’s establishment, while the company was still in its nascent stage, we carried out substantial preparatory work, such as participating in industry conferences and leveraging the professional networks that Mr. Li Jing and I had cultivated over many years.Of particular importance is review and update.Some biotech companies consider concentrating their efforts and only initiating marketing campaigns within three to six months of the target business development (BD) timeline. I believe this approach is insufficient. Particularly for new technologies, novel methodologies, and systematic frameworks, achieving structural alignment with partners requires a prolonged process of building awareness and gradually gaining acceptance. Therefore,The continuous development of high-quality products and front-end preparatory work should proceed in parallel, mutually reinforcing each other.

VCBeat: Regarding the dual-track approach, how does Orange Sail Pharma specifically implement its sustainable “BD+VC” business model and development path?

Dr. Zhang Tong:To establish a sustainable “BD+VC” business model, the underlying logic is that Orange Sail’s R&D capabilities ensure both a high volume and high quality of innovative molecules.Therefore, the out-licensing of innovative molecules will generate sustainable cash flows; these cash flows from business development (BD) deals, along with the financing they support, in turn help us advance our core projects into clinical trials, thereby creating greater venture capital (VC) value and establishing a sustainable, dual-engine driven cycle.

Dr. Li Jing:“BD+VC” is positioned as a dual-pronged strategy to propel Chengfan into a sustainably profitable biotechnology company. In the global biopharmaceutical landscape, we aim to pioneer a new, disruptive business model that breaks away from the traditional paradigm where biotech firms rely solely on external venture capital infusions for survival.Especially during a capital winter or periods of external environmental turbulence, this sustainable self-funding capability ensures that proprietary innovation projects remain insulated from capital market fluctuations, enabling their continuous advancement and rapid value creation.

VCBeat: After securing multiple major business development deals, OrangeSail is set to advance clinical trials in China and the US in 2025. How is the company planning its team and resource expansion?

Dr. Zhang Tong:Advancing IND applications and clinical trials will certainly facilitate subsequent business development (BD) collaborations.Chengfan’s core pipeline candidate is a bispecific antibody-drug conjugate (ADC) targeting oncology, with a broad target market and excellent preclinical data. We are highly confident in the product’s differentiated innovation, and preparations for and in-depth communications with potential partners are steadily advancing.

Dr. Li Jing:Clinical data is key to demonstrating the value of innovative drugs. Advancing innovative projects into clinical trials not only proves a company’s strength but, more importantly, lets the data speak to drive genuine recognition of the project’s value. Currently, OrangeSail hasPreliminarily established a clinical team,Clinical trials for the core pipeline are expected to advance in China and the United States in 2025.

VCBeat: What transformation process must OrangeSail undergo to transition from early preclinical advantages to clinical advantages?

Dr. Li Jing:First,In the long run, quality is paramount, as it constitutes the foundation for future success. The true innovative quality of a project—its “innate genetic makeup”—is effectively determined at the earliest stage of project initiation.OrangeSail’s core competitiveness lies in its deep expertise in the field of biologic macromolecule drugs, backed by strong source innovation capabilities—specifically in target discovery and project initiation, as well as drug molecule discovery. By integrating these strengths, the OrangeSail team can turn ideals into reality, transforming ideas and theories into drug molecules with clinical development potential. This enables the creation of higher-dimension, first-in-class (FIC) and best-in-class (BIC) novel molecules, such as T-cell engager (TCE) bispecific antibodies, multispecific antibodies, and bispecific antibody-drug conjugates (ADCs). Entering clinical development represents our approach to nurturing these inherently promising “seeds” with the greatest speed and highest quality, ensuring their robust growth.

Next are speed and cost, forming a triangular model.Quality is undoubtedly the top priority, followed by speed.—Speed signifies a competitive advantage, determining how to achieve rapid victory in today’s hyper-competitive landscape.Finally, cost savings should be considered only after ensuring quality and speed.This represents Orange Sail’s core pharmaceutical industry philosophy: focusing exclusively on first-in-class (FIC) and best-in-class (BIC) drugs in terms of quality, setting industry benchmarks for speed, and ensuring every penny is spent where it matters most in terms of cost.

VCBeat: Does the construction of assets such as dual-center facilities and animal laboratories, combined with a robust pipeline reserve, enhance competitiveness in overseas expansion and business development (BD)?

Dr. Li Jing:Yes. Although we have not made the large-scale asset investments typical of commercial pharmaceutical enterprises, our approach constitutes a relatively asset-heavy strategy compared to traditional biotech companies. We have established a specialized core R&D team and built a comprehensive research center covering the entire development process, including animal facilities. Developing truly innovative drugs requires extensive experimentation and exploration.Data generated through in-house exploration within proprietary animal facilities and laboratories constitutes the true source of intellectual property for a biotech company.Therefore, investment in experimentation is essential, and the know-how gradually accumulated from it serves as the cornerstone of the team’s long-term development.

Dr. Tong Zhang:In fact, the return on investment for these investments is very high.Following investment in laboratory assets, the early-stage costs for each innovative pipeline and novel molecule can be kept exceptionally low, a result determined by Orange Sail’s high-quality, high-volume pipeline strategy.

VCBeat: However, for biotech companies with relatively limited cash flow, asset investment and survival during the winter are inherently contradictory. How can a relative balance be achieved in the early stages?

Dr. Li Jing:What matters most is how to make trade-offs. For Orange Sail, capabilities in early-stage target discovery and drug discovery within the laboratory are critical and essential. Therefore, following the angel financing round, the majority of the funds were allocated to building this foundational infrastructure.Building on this foundation, the project can be advanced without requiring redundant investment in this segment. Subsequent financing and business development (BD) funds can be directly allocated to project operations.

Of course, thanks to over two decades of industry experience, Orange Sail has fully applied industrialized, systematic, and process-oriented thinking since its inception, spending capital with the highest efficiency in both capital utilization and workforce productivity. ThereforeDespite some early fixed-asset investments, our $50 million angel round has sustained us to date.

VCBeat: What key milestones and strategic plans does OrangeSail Pharma have for the next three to five years?

Dr. Li Jing:Over the 3- and 5-year periods, we aim to advance our first-in-class pipeline into late-stage clinical trials, whileStrategically positioned with several core assets in early-stage clinical development, multiple IND-enabling studies, and preclinical projects, gradually establishing a systematic portfolio of innovative products.Meanwhile, adhering to the principle that “1+1>2,” we actively seek strategic partners for strong alliances to deliver innovative drugs with the highest quality and greater speed, thereby maximizing their value and benefiting patients. Looking further ahead, we maintain an open attitude toward exit strategies and diverse commercialization possibilities, adapting flexibly to market trends.