China’s biotech firms move up value chain as drug deals evolve beyond licensing: analysts
Chinese biotech deal making is moving beyond the licensing of individual drug candidates, as the country transforms from a follower to a global innovation leader, according to analysts. The latest transaction underscores that shift. Beijing-based cancer drug developer InnoCare Pharma said on Thursday that it had entered into a strategic research collaboration and licensing agreement with US…
China's biotechnology firms are advancing their value chain, moving beyond simple drug licensing and establishing themselves as global innovators, according to industry analysts. This transformation is evident in a recent strategic partnership between China-based cancer drug developer InnoCare Pharma and US pharmaceutical giant Eli Lilly, which could be worth up to US$3.35 billion.
The partnership allows InnoCare to leverage its drug discovery platform to advance up to five targets, with the specific therapeutic areas yet to be disclosed. This shift from "speed-driven replication" to "differentiated innovation" is driving expectations that China will generate more globally significant drug-development partnerships, according to Jefferies' Cui Cui.
The deal sees Eli Lilly pay US$100 million up front, with InnoCare eligible for up to US$3.25 billion in milestone payments and "single-digit tiered royalties" based on annual net product sales. The agreement reflects the growing quantity and quality of China's innovative drug research, as evidenced by recent collaborations such as Jiangsu Hengrui Pharmaceutical's partnership with Bristol Myers Squibb, valued at up to US$15.2 billion.
Chinese research is projected to make up 29 of the 96 late-breaking abstracts at the upcoming European Society for Medical Oncology Congress in Madrid.
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