A roundup of some of the top stories coming out of China’s pharma industry, including AstraZeneca’s USD 1.92 billion deal with CSPC; Bayer’s new Shanghai incubator; Genentech’s purchase of Regor Pharmaceuticals’ breast cancer portfolio; Shanghai Fosun Pharmaceutical’s African manufacturing expansion, and CanSino’s USD 17 million polio vaccine grant from the Bill & Melinda Gates Foundation.

AstraZeneca signs $1.92 bln licencing deal with HK-listed CSPC (Reuters)

AstraZeneca said on Monday it would pay up to $1.92 billion to CSPC Pharmaceutical Group Ltd in an exclusive licence agreement to boost the Anglo-Swedish drugmaker’s cardiovascular pipeline. Apart from the aforementioned milestone and royalty payment, Hong Kong-based CSPC will also get an upfront payment of $100 million as part of the deal.
CSPC will develop an early-stage, novel small molecule Lipoprotein (a) disruptor, which could offer benefits to patients with high levels of “bad cholesterol”, AstraZeneca said.

China’s WuXi explores sale of pharma units as US restrictions loom (Financial Times)

Two affiliated Chinese drug manufacturers targeted by forthcoming US national security legislation are working on sales of some of their operations, according to people familiar with the matter. WuXi AppTec and WuXi Biologics are among five China-based companies targeted by the Biosecure Act, which would ban drugmakers with US government contracts from using the Chinese groups’ services after 2032. The bipartisan bill overwhelmingly passed the House of Representatives last month and is making its way through the Senate.

China Issues Draft Rules to Curb Unfair Competition in Pharma Sector (Yicai Global)

China has released draft regulations aimed at curbing unfair competition in the pharmaceutical industry and creating a fair and transparent market environment.

The draft rules, issued by the State Administration for Market Regulation on Oct. 11, outline 30 practices in nine different scenarios that are identified as commercial bribery and are prohibited, with the aim of helping the industry mitigate risks and curb corruption. The draft is open for public consultation until Oct. 20.

 

Bayer opens life sciences incubator in Shanghai (China Daily)

On Sept 26, Bayer opened Bayer Co. Lab Shanghai as part in its global network of life science incubators with others situated in the United States, Japan and Germany.

According to the company, the Shanghai unit will provide exclusive space and tailored support services for Chinese startups, promote open innovation and collaboration in the biotech ecosystem and play an important part in Bayer’s efforts to promote local research and development and innovation throughout the whole chain.

 

Genentech buys Regor’s CDK inhibitors in $850m deal (Pharmaceutical Technology)

Genentech is strengthening its oncology pipeline by acquiring Regor Pharmaceuticals’ portfolio of breast cancer cyclin-dependent kinase (CDK) inhibitors in an $850m deal.

The deal, anticipated to close in Q4 2024, was unveiled by Genentech’s parent company Roche at its pharma day in London. The pharmaceutical giant also shared that it is focusing on three major therapeutic areas – one being oncology.

 

Lilly’s manufacturing splurge continues with $200M expansion in China (Fierce Pharma)

Five months after Eli Lilly secured the first of two approvals for tirzepatide in China—one for Type 2 diabetes and the other for obesity—the company has revealed that it will expand its manufacturing site in Suzhou to produce the in-demand drugs along with other pipeline medicines.

Lilly has earmarked $200 million for the upgrade, a company spokesperson confirmed to Fierce Pharma. The new project will bring Lilly’s total investment in Suzhou to nearly 15 billion yuan ($2.1 billion), according to a Chinese release. The 28-year-old site, which is the Indianapolis pharma’s lone manufacturing facility in China, employs 500.

 

Chinese pharmaceutical firms expand to Africa under ‘health silk road’ (South China Morning Post)

Chinese pharmaceutical giant Shanghai Fosun Pharmaceutical is expected to complete the first phase of its manufacturing facility near Abidjan, Ivory Coast’s biggest city, for antimalarial drugs and antibiotics by the end of the year.

The manufacturing facility, financed with €50 million (US$54.7) from the International Finance Corporation last year, is expected to produce 5 billion tablets annually once all three phases are completed.

 

Fosun Pharma secures full ownership of Fosun Kite with $27 million deal (BioSpace)

Shanghai-based Fosun Pharmaceutical has announced it has acquired the remaining 50% stake in Fosun Kite Biotechnology from Kite Pharma for $27 million, giving it full control of the joint venture. With this move, Fosun now holds 100% ownership, dissolving the original partnership established with Kite Pharma, now part of Gilead Sciences (Nasdaq: GILD).

Alongside the acquisition, Fosun has committed an additional $10 million investment for further product development and operational expansion, signaling its continued focus on advancing cell therapies.

 

Chinese biotech startup LongBio Pharma completes Series B2 financing to advance late-stage clinical studies (BioSpectrum Asia)

China-based LongBio Pharma (Suzhou), a Phase III-stage biotech startup focused on the R&D of innovative antibody and fusion protein drugs for allergies and complement-mediated diseases, has announced the completion of its Series B2 financing round, raising tens of millions of RMB.

The round was led by Qiming Venture Partners, with continued support from existing investors. The funds will primarily be used to advance late-stage clinical studies in the company’s pipeline, strengthen team capabilities, and bolster working capital.

 

China’s CanSino receives over $17 M from Bill & Melinda Gates Foundation to accelerate polio vaccine development (BioSpectrum Asia)

China-based CanSino Biologics Inc. has received an additional financial boost, securing a grant exceeding $17 million to propel its recombinant poliovirus vaccine (VLP-Polio) project forward. This new funding, which builds on the initial funding received in October 2023, also encompasses potential related combined vaccine candidates.

In addition to the grant, CanSinoBIO has also obtained approval to start phase I/II clinical trials for the VLP-Polio vaccine in Indonesia, focusing on infants and toddlers in certain ages. This marks an important step forward in ensuring VLP-Polios safety and efficacy for the most vulnerable population.

 

Hong Kong-based Akeso Biopharma secures $250 M to propel global expansion of innovative drug pipeline (BioSpectrum Asia)

Akeso Biopharma, headquarterd in Hong Kong, has successfully raised approximately $250 million through a share placement. This offering has earned notable recognition among international investment firms, with the majority of our final subscribers being long-term funds and healthcare funds.

This marks Akeso’s second successful share placement in 2024. Following this transaction, the startup’s cash on hand are expected to be 1.064 billion (7.5 billion RMB).

 

BeiGene launches PD-1 drug Tevimbra at 10% discount to Merck’s Keytruda (Fierce Pharma)

BeiGene has officially launched its PD-1 cancer drug Tevimbra in the U.S. more than six months after receiving a much-delayed FDA approval.

BeiGene is pricing Tevimbra at a 10% discount to other PD-1 therapies available in second-line esophageal squamous cell carcinoma (ESCC), for which Tevimbra is currently approved, the company’s newly minted North America general manager, Matt Shaulis, said in a release Frida