Guangzhou High-Tech Zone Group Injects RMB 500 Million to Accelerate Commercialization and Expanded Indications of Akeso's Global First-in-Class PD-1/CTLA-4 Bispecific Antibody Cadonilimab (Kaitanli)
On November 15, the strategic cooperation signing ceremony between Akeso Pharma, a subsidiary of Akeso, Inc., and Guangzhou High-Tech Industrial Development Zone Investment Group Co., Ltd. (hereinafter referred to as “High-Tech Zone Group”) was successfully held in Guangzhou. The High-Tech Zone Group will provide RMB 500 million in financial support to Akeso Pharma. This strategic partnership will further strengthen Akeso’s cash position and accelerate the industrialization and commercialization of its global first-in-class product, Kaitanni (PD-1/CTLA-4 bispecific antibody, cadonilimab injection). This marks another round of financial support secured at the subsidiary level within the group, following Akeso’s raise of approximately RMB 500 million through the capital markets in July 2022.
Akeso Biopharma is a key enterprise cultivated by Guangzhou Municipality, primarily responsible for the clinical development, industrialization, and commercialization of Cadonilimab, an independently developed product of Akeso Inc. Cadonilimab was approved for marketing in June 2022 as the world’s first novel bispecific antibody targeting dual immune checkpoints for oncology, and it is also the first independently developed bispecific antibody drug approved in China.
Shen Qun, Chairman of Guangzhou High-Tech Zone Group, stated that as the only state-owned asset management platform in Huangpu District focused on biomedicine, the High-Tech Zone Group, in accordance with the overall deployment of the District Committee and District Government, has centered its efforts on its core biomedical responsibilities. By building a comprehensive R&D service platform for the entire biomedical chain with CXO at its core, the group covers the full lifecycle of drug and medical device development—from preclinical research and clinical trials to regulatory submission and market launch. This approach fosters a biomedical industrial ecosystem where R&D services and product development mutually reinforce each other, thereby advancing the growth of the biomedical industry. Akeso is a leading innovative biopharmaceutical enterprise in Guangdong Province. Its independently developed cadonilimab, the world’s first approved bispecific antibody for tumor immunotherapy, is also the first globally pioneering biologic independently developed from start to finish by a local enterprise in Guangdong Province. We aim to integrate advantageous regional resources to drive Akeso’s continued rapid growth, spur the expansion of the high-tech biomedical industry cluster in the Development Zone, and elevate the level of biomedical innovation.
Dr. Xia Yu, Founder, Chairman, President and CEO of Akeso, pointed out that the strategic cooperation between High-Tech Zone Group and Akeso Biopharma,This represents the high recognition by the Guangzhou Municipal Government and the Development Zone Administration of Akeso’s corporate development value and potential, and also reflects Guangdong Province’s determination to vigorously develop the biopharmaceutical industry and foster leading enterprises.. The financial support from the High-Tech Zone Group has not only further strengthened Akeso’s capital reserves and competitive edge, but will also accelerate the development of its innovative products, particularly the industrialization and commercialization of its core bispecific antibody, Cadonilimab.
Since 2021, market financing in China’s drug innovation sector has faced immense pressure. The stock prices of biopharmaceutical companies listed under Chapter 18A of the Hong Kong Stock Exchange once plummeted sharply, while financing for the biotech sector hit record lows. This has sparked widespread concern about the long-term sustainability of R&D efforts among biotech firms. To date, based on public information and feedback from market participants, the biotech industry has begun to diverge: some companies have been forced to implement significant layoffs, while others have sold core R&D pipeline assets or halted production at their manufacturing facilities. These developments underscore the severe challenges facing the survival of biotech enterprises.
However, market segmentation has also led to the concentration of market resources among some leading companies, which will further drive the industry into a phase of deep differentiation.
Benefiting from its continued high efficiency in the layout and development of new drugs, Akeso’s innovative value and growth prospects have continued to receive strong recognition from the capital market. In particular, following the approval of cadonilimab, a bispecific antibody independently developed by the company, the market has expressed greater confidence and higher expectations for Akeso’s future performance and certainty. In July 2022, Akeso successfully raised HK$580 million through a share placement in the Hong Kong capital market, providing robust support for subsequent product development and commercialization. At that time, it was the only company listed under Chapter 18A of the Hong Kong Stock Exchange in 2022 to successfully raise additional funds through a secondary offering. Following this financing, market concerns regarding Akeso’s cash reserves were largely alleviated.
Akeso Biopharma’s subsidiary has once again received a RMB 500 million capital injection from Guangzhou’s primary state-owned asset operation platform. This will undoubtedly further strengthen Akeso Biopharma’s cash reserves, which is highly beneficial for accelerating the clinical development of its core bispecific antibody, cadonilimab, in major late-stage (Phase III) indications such as first-line gastric cancer, liver cancer, and first-line cervical cancer. Meanwhile, Akeso Biopharma will further accelerate the development of other blockbuster products, including the bispecific antibody AK112 (a PD-1/VEGF bispecific antibody).
Akeso, Inc. (HKEX Stock Code: 9926.HK) is a biopharmaceutical company dedicated to the research, development, manufacturing, and commercialization of innovative antibody-based novel drugs that are affordable for patients worldwide. Since its inception, the company has established an integrated R&D innovation system centered on its proprietary end-to-end comprehensive drug development platform (ACE Platform) and bispecific antibody development technology (Tetrabody), along with a GMP-compliant manufacturing system meeting international standards and an advanced commercialization framework.
The company currently has a pipeline of more than 30 innovative drug candidates for the treatment of major diseases, including cancer, autoimmune disorders, inflammatory conditions, and metabolic diseases. Among these, 17 candidates have entered clinical trials, including two first-in-class bispecific antibody drugs (PD-1/CTLA-4 and PD-1/VEGF). In June 2022, Akeso’s Kaitanni, the world’s first dual immune checkpoint inhibitor for cancer,®(PD-1/CTLA-4 Bispecific Antibody, Cadonilimab Injection) Approved for the Treatment of Cervical Cancer. Akeso Biopharma aims to become a globally leading biopharmaceutical company by developing first-in-class and best-in-class novel therapies through efficient and breakthrough R&D innovation.
Guangzhou High-Tech Industrial Development Zone Investment Group Co., Ltd. (hereinafter referred to as “High-Tech Zone Group”) was established in 1984, with its predecessor being the Guangzhou Economic and Technological Development Zone Industrial Development Corporation. It is one of the earliest state-owned enterprises established in the Guangzhou Development District.
After nearly four decades of development, the High-Tech Zone Group has evolved into a large-scale comprehensive state-owned enterprise group, with its core businesses focused on the biopharmaceutical and health industries, including biopharmaceuticals, inspection and testing, and medical aesthetics and health. With total assets exceeding RMB 60 billion, the Group owns more than 70 wholly-owned and holding subsidiaries and holds equity stakes in over 90 affiliated companies. It has established strategic partnerships with dozens of Fortune Global 500 companies, operates across multiple countries and regions, and serves hundreds of millions of people worldwide.
The High-Tech Zone Group positions itself as a leader in healthy living across the entire industry lifecycle, a builder of high-quality cities with comprehensive regional coverage, and a creator of innovative communities offering all-around services. In the field of biopharmaceuticals and health industries, it provides targeted support and full-chain services to enterprises of all sizes, large and small. It is committed to building an internationally top-tier ecosystem, establishing a world-class demonstration zone, and creating a hub for globally renowned enterprises, striving to become the operator of a world-class biomedical industry cluster in the Guangdong-Hong Kong-Macao Greater Bay Area.