Eyes on Asia: Merck and BioNTech land Chinese bispecifics

Merck spends big bucks to protect cancer dominance  

In a major deal, Merck & Co. (known as MSD outside of North America) has nabbed ex-China rights for a potential competitor to its own lead drug, Keytruda (pembrolizumab).  

Merck signed a deal that pays $588 million upfront for a combination of programmed death-1 and vascular endothelial growth factor-A (PD-1/VEGF-A) bispecific antibody developed by Shanghai, China-based LaNova Medicines.  

Keytruda is currently the world’s best selling drug, raking in $25 billion in 2023. However, it is nearing the end of its patent protection. Meanwhile, other PD-1/VEGF-A candidates are claiming better efficacy for their clinical-stage bispecific drugs.

In September, Summit Therapeutics and its development partner Akeso, announced strong results for iIvonescimab, out-performing Keytruda by a considerable amount, causing jaws to drop. In a Phase III trial, ivonescimab produced a 50% decrease in disease progression or death compared to Keytruda. It had a disease control rate of nearly 90% versus 70.5% for the Merck drug.  

LaNova’s PD-1/VEGF-A bispecific antibody uses the PD-1 molecule to restore the natural cancer-killing ability of the immune system its VEGF-A mechanism starves the tumor by preventing blood vessels from forming. 

In addition to the $588 million upfront payment, LaNova is also eligible to receive up to $2.7 billion in milestones for various oncology indications. The company has already started a Phase I trial in China of the bispecific for solid tumor cancers. 

BioNTech absorbs one of its partners 

BioNTech spent $800 million of its COVID vaccine cash to buy Biotheus, a Guangdong, China biopharma with a portfolio of 20 drug candidates. 

This isn’t the first collaboration between the two companies. In November 2023, BioNTech paid $55 million upfront for global rights (excluding China) to Biotheus’ lead candidate — a bispecific antibody targeting PD-L1/VEGF-A, the same drug class as the one Merck acquired from LaNova (see above). 

That asset became potentially more valuable when Akeso and Summit Therapeutics reported that ivonescimab, their version of a PD-1/VEGF-A bispecific, out-perfomed Keytrude, a PD-1 inhibitor.  

BioNTech expects to start multiple registrational trials for BNT327/PM8002 in 2024 and 2025 in combination with chemotherapy for solid tumor indications. Non-small cell lung cancer (NSCLC) and triple-negative breast cancer will be two of those trials. 

BioNTech has been busy forming partnerships in the last two years. It has made deals with DualityBio, Fosun Pharma, Genentech, Genevant, Genmab, MediLink, OncoC4, Pfizer and Regeneron in addition to Biotheus. 

C Ray nets $100m for radiopharmaceutical CRDMO 

C Ray Therapeutics snared more than $100 million in a Series A+ round to fund additional services at its radiopharmaceutical contract research, development and manufacturing organization (CRDMO).  

A big deal currently, radiopharmaceuticals (RDCs) insert radioactive isotopes into molecules, using the distinct energy-level rays emitted by various isotopes to either visualize or destroy tumors, integrating diagnosis and therapy.  

C Ray claims to have expertise in alpha-emitting RDC drugs. The financing is earmarked for improving the company's core technology platforms, including:  

The $100 million capital raise is a rare sight in China these days. C Ray attributed its large capital raise to the company’s potential in a hot new field, an argument that has some validity. But the size of the funding probably also results from the company’s business plan: C Ray will help other companies build their radiopharmaceutical candidates, rather than developing its own. 

The company says it has secured stable supplies of isotopes and logistics channels for products, ensuring efficient operation of the supply chain. It has also built a 30,000 square meter R&D and production base for radiopharmaceuticals. 

C Ray Therapeutics was established in 2021 with headquarters in Chengdu Medical City. It was incubated by 6 Dimensions Capital. 

Biosion signs tenth global licensing deal 

Nanjing’s Biosion outlicensed global rights (ex-China) for two of its atopic dermatitis candidates to Aclaris Therapeutics.  

With these two assets, Biosion has now found global partners for ten of its candidates. The company’s business model is built around outlicensings that raise the money “necessary to advance our other innovative programs to IND filings,” according to Anthony Yeh, chief strategy officer at Biosion. 

Biosion will receive a $40 million upfront payment plus reimbursement for certain development costs. It will also receive a 19.9% stake in Aclaris along with up to $900m in milestone payments and low-to-mid single digit royalties on net sales. 

The company believes BSI-045B, currently in US Phase II trials for atopic dermatitis and asthma, could become a first-in-class, novel anti-TSLP monoclonal antibody (mAb). The other candidate in the deal, BSI-502, is a pre-clinical novel bispecific antibody that targets both TSLP and IL4R. 

BeiGene becomes BeOne Medicines 

Although BeiGene was founded in Beijing in 2010, and although much of its R&D remains in China, BeiGene will drop its name to lose its connections to China and emphasize its global ambitions.  

BeOne will be the company’s new name (pending shareholder approval). The company stages much of its clinical development in global markets, and it wants its name to reflect an international focus.  

BeiGene is listed on the Hong Kong and Shanghai stock exchanges, as well as the Nasdaq exchange in the US.