YTD23 OCT OUTLOOK:
CHINA BIOPHARMA GLOBAL TRANSACTION
INSIGHTS, TRENDS & ANALYSIS
In October, we noticed a continued uptick in cross-border deals, now totaling 28 over the past 3 months, a noticeable green shoot for transactions. October alone garnered 12 deals, with a slight lead in out-licensing (7) ahead of in-licensing (5). We expect this transaction trend to build up steam as we head towards 2024.
There were 15 out-licensing deals from China-based biopharma over the past 3 months August to October, with over 50% of the territories licensed for Global or Worldwide ex-China rights. Another 30% were for US, UK or EUR geographies. With regards to the development phase of the asset, over 50% of the deals were pre-clinical or phase 1. Oncology dominates the out-licensing space, with Infectious Disease and Metabolic Disease on the rise.
Notable October out-licensing transactions:
Hansoh’s HS-20089 complements GSK’s portfolio of gynaecologic cancer therapies with an exclusive license agreement Worldwide ex-China
Merck has gained worldwide rights outside of China for PARP1 trapping inhibitor and ADC drug, as it partners with Hengrui in deal worth up to $1.48bn ($170 upfront)
MediLink Therapeutics Announces Strategic Collaboration and Worldwide License Agreement with BioNTech to develop next-generation anti-cancer antibody-drug conjugate for an upfront payment $70m and additional development, regulatory and commercial milestone payments potentially totaling over $1 billion
Of the 13 in-licensing collaborations, 80% of the territories licensed were for Greater China and/or including APAC rights. Interestingly, the asset phase was well diversified along its developmental-commercialization life cycle with approved drugs taking the lead with 36% of all deals. Deals in pre-clinical and pre-IND enabling assets are rising in 2023. Oncology is still the most popular therapeutic area, but Chinese companies are looking for assets beyond oncology, namely metabolic and infectious disease are emerging areas in recent three years.
Notable October in-licensing transactions:
BioLineRx Entered Exclusive License Agreement for the Development of Motixafortide in Asia, Advised by MSQ Ventures
Pharnext receives a new offer from Tasly valuing its drug candidate for Charcot-Marie-Tooth disease type 1A at more than €500m and the support of its financial partners
Cross-licensing deals are expected to rebound in 2024. In 2023, small and medium-sized biotech companies have become more prudent with in-licensing. Global (Ex-China) out-licensing continues its growing trend from Chinese biotech.