Eyes on Asia: News from Sanofi, Bayer, AZ plus the return of VC?

Zenas IPO

Zenas BioPharma raised $259 million in a rare US biopharma initial public offering (IPO). The offering was priced at $17 per share, the middle of the expected range.

The company will use the funds to complete late-stage development of its lead product, obexelimab.

Founded in 2019, Zenas was originally headquartered in Shanghai, but has now moved to the Boston area while maintaining a China presence. The Zenas IPO was one of three US biotech IPOs conducted on the same day, raising a total of $700 million and also raising biotech investor hopes that an IPO revival could be possible.

Sanofi buys CD73 rights

Hangzhou’s TJ Biopharma sold the China rights for its CD73-targeted antibody to Sanofi in a deal worth up to $237 million.

The antibody, uliledlimab, is designed to modulate the tumor microenvironment. Earlier this year, TJ became the heir to I-Mab’s China assets, including uliledlimab, when I-Mab moved its operations to the US. TJ will receive $36 million in an upfront payment and near-term milestone payments plus additional milestones that could bring the package to $237 million.

LongBio welcomes VC return

LongBio Pharma (Suzhou) completed a Series B2 round that was led by Qiming Venture Partners.

Venture capital events for China biopharmas have been near-dead in 2024, though Qiming’s investment shows the sector still has some life. The B2 round was reported to total $14 million. The company is developing ten projects with two candidates in clinical trials, all on a relatively small $33 million of previously raised VC funding. 

Bayer in Shanghai

Germany’s Bayer opened its newest life science incubator, Bayer Co.Lab Shanghai, in Shanghai’s Zhangjiang Park.

The company positioned its newest outreach center as part of the company’s external innovation strategy.

The facility offers open collaboration with China startups on a ‘no strings attached’ basis. Bayer says the new Shanghai incubator is evidence of its commitment to innovative investing in China, which remains a key market for Bayer that it wants to expand.

While many outside biopharma firms have become cautious about their China activities, Bayer is increasing its presence.

AZ Korea contest

AstraZeneca Korea has devised a new way to partner with young Korean biohealth companies.

It plans to stage the AstraZeneca K-Bio Expressway contest for novel Korean biohealth companies that plan to enter China’s market. The two winners of the contest will receive some cash and guaranteed entry into iCampus, AZ’s open innovation hub in Wuxi, China. Interested companies must submit their proposals by October 11^th. Between six and eight companies will be selected to visit the iCampus, and two of them will be chosen for the iCampus program during a pitching session on November 4.