US firm ArriVent’s plunge shows risks facing China’s biotech expansion into global markets
US firm ArriVent BioPharma’s shares plummeted after a late-stage trial failure involving a cancer drug licensed from China, a setback that analysts said highlighted the challenges facing Chinese biotech companies expanding overseas. New York-listed ArriVent closed down nearly 47 per cent on Tuesday after reporting that its cancer treatment firmonertinib failed to meet its main goal in a phase 3…
ArriVent BioPharma, a US firm, saw its shares plummet by nearly 47% on Tuesday following a failed late-stage trial of its cancer drug firmonertinib, developed in China. The drug, originally created by Shanghai Allist Pharmaceuticals, aimed to treat non-small cell lung cancer (NSCLC) by targeting specific gene mutations. ArriVent secured the exclusive rights to market firmonertinib outside China in 2021, making it one of the first US biotech firms to license Chinese drug assets.
ArriVent's phase 3 trial, however, did not prove that firmonertinib could effectively delay disease progression compared to standard chemotherapy treatment, resulting in a disappointing outcome for the company. In a statement, ArriVent's chairman and CEO, Bing Yao, expressed disappointment with the results, stating that the company was now evaluating the full trial data to determine the most suitable development path for the drug.
Analysts highlighted that the failure emphasized the challenges Chinese biotech companies face when expanding overseas, as commercial success in China does not guarantee clinical success in new markets. David Zhang, an analyst at Trivium China, pointed out that despite the rapid growth in cross-border partnerships between Chinese and global pharmaceutical companies, the inherent clinical uncertainty remains, even for established products.
Written by urgent.news from SCMP Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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