Yongtai Bio and China Resources Pharma Announce Comprehensive Strategic Partnership

On September 17, Immunotech Biopharm-B (06978) announced that it had entered into a strategic cooperation framework agreement with China Resources Pharmaceutical Group Limited (03320) (“CR Pharma”). The two parties will engage in comprehensive collaboration in the following areas: sales and distribution of EAL® in China, operations and research and development, joint establishment of a biopharmaceutical industry investment fund, and future financing arrangements.

This marks another major announcement from both parties following CR PHARMA COMM’s HK$800 million investment in Immunotech Biopharm this July. As clearly indicated in Immunotech Biopharm’s announcement, the sales and distribution of EAL® in China is the cornerstone of this strategic partnership, with CR PHARMA COMM’s extensive pharmaceutical distribution network set to accelerate the commercialization of EAL®.

Unlike the CAR-T products that have recently garnered significant attention for treating hematologic malignancies, Immunotech Biopharm’s EAL® is China’s first cell-based immunotherapy product approved to initiate clinical trials for solid tumors. It holds a strong first-mover advantage in its primary indication of liver cancer, promising to bring relief to the growing number of liver cancer patients in China in recent years. Public data indicates that the market size of China’s liver cancer drug industry continues to expand, with projections estimating it will surpass RMB 40 billion by 2022. Following its market launch, EAL® is poised to fill the gap in domestic immunotherapy options for liver cancer. By benchmarking against Immuncell-LC™, a product with a similar technological pathway from South Korea’s Green Cross Cell Corporation, and accounting for the disparity in market sizes between China and South Korea, EAL® is expected to generate sales revenue exceeding RMB 6 billion in the liver cancer treatment sector, demonstrating substantial market potential.

In addition to the in-depth collaboration on EAL® products, Immunotech Biopharm announced that both parties will actively promote the establishment of a biomedical industry investment fund in Shenzhen. This fund will focus on investing in the upstream and downstream segments of the cell therapy industry supply chain. By locating the investment fund in Shenzhen, Immunotech Biopharm and CR PHARMA COMM are clearly drawn by Shenzhen’s supportive policies for the cell and gene therapy sector. With the dual support of industrial policies and the investment fund, it remains to be seen whether Shenzhen will become Immunotech Biopharm’s next production hub.

Overall, based on this strategic cooperation, CR PHARMA COMM will provide strong support for the commercialization of Immunotech Biopharm’s first product, helping Immunotech Biopharm secure a leading position in the industrialization of cellular immunotherapy for solid tumors in China. Meanwhile, the collaboration between the two parties also offers significant reference value for the coordinated development of the cellular immunotherapy industry, contributing to the long-term growth of China’s cellular immunotherapy sector.