China Medical News

China's government has made cancer treatments a top priority for the industry, and supportive policies for the sector over the past five years are now bearing fruit and Western firms have come knocking at Chinese biotech doors.
The most recent being a major licensing deal RemeGen Co., Ltd. struck last month with Seattle-based Seagen Inc. The agreement to co-develop cancer treatments using a RemeGen antibody drug conjugate is regarded as one of the biggest of its kind between a Chinese biotech and a Western firm. It provides for up to $2.4 billion in milestone payments, in addition to $200 million upfront as well as royalties if approved.

For Seagen, the RemeGen deal will allow it to directly challenge breast cancer treatments from Roche and AstraZeneca/Daiichi Sankyo. The antibody also shows promise in tackling bladder and stomach tumors.
Other notable deals include a Novartis agreement worth up to $2.2 billion for a BeiGene Ltd. drug. The two are co-developing an antibody similar to Keytruda and Opdivo which help the immune system attack several different types of cancer and which have reaped billions of dollars in sales.
AbbVie has also partnered with I-Mab to co-develop a monoclonal antibody for several types of cancer in a deal worth up to $1.9 billion.

According to Morningstar analyst Jay Lee, an industry expert, the number of large out-licensing pacts for Chinese biotechs is expected to grow, with I-Mab, Innovent Biologics, Junshi Biosciences and Legend Biotech the likely candidates for further licensing deals with Western firms, citing their existing partnerships and pipeline assets. (Source: Reuters)