GSK licenses Chinese firm’s cancer drug in US$750 million deal

British pharmaceutical company GSK has reached a landmark agreement to acquire the rights to a groundbreaking cancer drug from Chinese biotechnology firm Chimagen Biosciences, in a deal valued at up to US$750 million. The acquisition underscores China's rising prominence in the biotech industry. GSK plans to secure full global rights to a T-cell engager (TCE) from Chengdu-based Chimagen, a drug targeting multiple myeloma, a form of blood cancer.

TCEs function by directly binding to T cells, a type of white blood cell, and signaling the immune system to target cancer cells. Although existing TCEs effectively treat multiple myeloma, they frequently lead to severe side effects. Chimagen's new drug demonstrates potential for reduced side effects and more long-lasting results, according to GSK.

GSK will make an upfront payment to Chimagen for the development and commercialization of its TCE assets, followed by further payments contingent on the drug's successful development and sales. The program is scheduled to commence phase one trials the following year. This deal highlights China's rapid advancement in biotechnology, which has attracted significant interest from global pharmaceutical companies and investors in recent years.

In 2023 alone, out-licensing deals involving innovative Chinese drugs reached a total value of US$120 billion, marking a 36 per cent increase compared to the same period in 2022, according to data from China's National Medical Products Administration.