In recent years, "going to sea" has become a key word
in the development of Chinese pharmaceutical companies.
Among them, with the help of License out, It has become a more "going to sea" method
adopted by Chinese innovative pharmaceutical companies.
The White Paper on Chinese Pharmaceutical Companies Going Overseas, jointly released by KPMG China and the GBI in May this year, pointed out that in 2020, China's innovative drugs have entered the outbreak period
of "going to sea".
The number of innovative drugs "going to sea" in the form of License out is as high as 39, and the cross-border transactions between local pharmaceutical companies and overseas pharmaceutical companies have accumulated 271, achieving an increase of 300%
in five years.
Since entering 2022, there have been many
cases of domestic pharmaceutical companies "going to sea".
For example, on July 28, CSPC Pharmaceutical Corporation announced that it has entered into an exclusive licensing agreement with Elevation Oncology, Inc.
for the development and commercialization of the anti-CLDN18.
2 antibody-conjugated drug SYSA1801 outside of Greater China, and that CSPC subsidiary Jushi Biotech will retain its interests
in Greater China.
On July 26, Kelun Pharmaceutical announced that its holding subsidiary, Sichuan Kelun Botai Biopharma Co.
, Ltd.
, has entered into a cooperation and exclusive licensing agreement with the US pharmaceutical company Merck to develop an antibody conjugate (ADC) drug
for the treatment of solid tumors.
On May 5, Lixin Pharmaceutical licensed the innovative antibody-conjugated drug (ADC) LM-302 independently developed by Lixin Pharmaceutical to Turning Point corporation in the United States; On April 6, HeboMed announced that it had entered into a global external licensing agreement with AstraZeneca to develop and commercialize
HBM7022.
In addition, the author learned that in the first half of 2022, Henlius has completed 4 License out transactions
.
Up to now, it has reached 16 overseas licensing transactions
with international business partners such as Accord, Abbott, Organon, Eurofarma, Getz and so on.
It is understood that pharmaceutical companies " to go to sea" can be divided into independent sea and external authorization (License out), of which License out is a Chinese pharmaceutical company to their own products overseas rights or global rights and interests licensed to the European and American multinational pharmaceutical companies as the representative of pharmaceutical companies, to obtain a down payment and milestone fees
。 For example, the above-mentioned pharmaceutical company, Sinopc Pharmaceutical Jushi Bio, has obtained a down payment of US$27 million and is entitled to up to US$148 million in potential development and regulatory milestones and up to US$1.
02 billion in potential sales milestone payments; Crambote received a down payment of $35 million, various milestone payments of up to $901 million and a corresponding net sales commission
.
License out is getting better and will be the mainstream mode
of going to sea for some time to come.
For the benefits of License out, the industry said that the external licensing will bring more cash flow to the company, which will further help the company improve its innovative research and development strength and move forward
on the road to Biopharma.
At the same time, industry insiders also pointed out that for companies that want to go international, whether they have the strength and sufficient experience to go to sea is an important factor
.
In the specific strategy and path selection, it is also necessary to evaluate
according to the specific product or target market situation.
In general, whether it is independent capacity building or the choice of external cooperation, innovative pharmaceutical companies need to fully consider the company's own resource endowments, whether they have differentiated products, whether they have established relevant capabilities in the local market, and
whether they meet the requirements in resource input.
