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Deals and Financings

FutureGen Biopharm (Beijing) out-licensed global rights for its next-gen TL1A antibody, a proposed therapy for inflammatory bowel disease, to AbbVie (ABBV) in a $1.7 billion agreement (see story). The candidate is in preclinical development. AbbVie, which will have exclusive rights to manufacture and commercialize FG-M701, will pay $150 million upfront and the rest in milestones, plus royalties.

FG-M701 is a fully human monoclonal antibody targeting TL1A, a clinically validated target in IBD. FutureGen believes the unique engineering of FG-M701 will result in a best-in-class candidate with better efficacy and less frequent dosing than earlier TL1A antibodies. 

Shanghai MabCare Therapeutics out-licensed global rights (ex-China) for its ADC targeting protein-tyrosine kinase 7 (PTK7) candidate to Day One Biopharma (DAWN), a California company, for $55 million upfront and $1.15 billion in milestones (see story). MabCare is also eligible for low-to-mid single-digit royalties.

The deal is Day One’s first foray into ADCs. The US FDA approved an IND for MTX-13 (now known as DAY30) earlier this year. MabCare said the candidate showed efficacy against solid tumors in preclinical testing. Day One expects to start US trials at the end of 2024. 

Decheng Capital announced plans for a $700 million global life sciences fund, its fifth life sciences vehicle (see story). The company, which has offices in Silicon Valley, Shanghai, and New York, has $2.1 billion in assets under management.

Since its founding in 2012, Decheng has invested in novel drug companies and medical device makers, along with diagnostics and tools companies. Previously, Dechang’s fourth fund raised $650 million in 2021, and the third fund aimed to close at $450 million in 2018.

Shanghai Fosun Pharma sold a 5% stake in India’s Gland Pharma for $172 million via a block trade (see story). In 2017, Fosun paid $1.1 billion for a 58% holding in Gland from a group of investors including KKR.

According to unofficial reports, Fosun has been trying to sell its Gland shares for some time, but professional investors have balked at the high asking price, with Fosun unable to persuade them to believe in its optimistic view of Gland’s future. To raise some capital, Fosun has decided to continue offering 5% pieces of Gland to investors. The current selling price is more than three times Fosun’s 2017 purchase price. 

Ronovo Surgical, a Shanghai company that develops surgical robotics for soft tissue procedures, closed a $44 million Series B financing to commercialize its modular robotic system, the Carina Platform, in China (see story). Ronovo is also expanding internationally.

Carina features a modular architecture that offers clinical capability, flexibility, accessibility and affordability. Ronovo expects to receive NMPA regulatory approval in China and begin commercialization in early 2025. The round was co-led by Guolian Capital and INCE Capital, with participation from King Star Med LP and existing shareholder, LongRiver Investments. 

Baltimore’s Rapafusyn Pharma, a novel drug company based on non-degrading molecular glues, extended its Series A financing, bringing the total to $28 million (see story). The financing was led by China investors 3E Bioventures Capital and Proxima Ventures Ltd. with participation from Lapam Capital.

Rapafusyn’s libraries of RapaGlues produce novel chemical entities for targets that are challenging or undruggable by other modalities. The platform leverages non-degrading macrocyclic molecular glues to address therapeutic targets. Rapafusyn’s DNA-encoded libraries (DELs) and arrayed libraries of RapaGluesTM form neo-PPIs to inhibit a protein from its usual activity. 

Shanghai’s YolTech, a clinical-stage biopharma, out-licensed China manufacturing and sales rights for its proprietary DNA editor, YolCas12TM, to KACTUS, also a Shanghai company (see story).

YolCas12 is a novel CRISPR/Cas gene editing tool developed on an ultra-high-throughput molecular evolution platform. It was built on HEPDONE, a High-Throughput Evolution Platform for Discovery and Optimization of Novel Editors. YolTech, which has used YolCas12 to build a portfolio of therapies, said the agreement will advance commercialization of the product. 

Two China RNA companies, Starna Therapeutics of Suzhou and Guangzhou’s Recorna Bio, will collaborate to discover novel therapies for lung diseases (see story). The partnership will use Starna’s STAR LNP delivery technology platform together with Recorna’s MINIC RNA editing platform.

Recorna’s technology enables flexible, reversible, multiple regulation of gene function and expression. Starna’s delivery platform will transmit candidates to the lungs while avoiding off-target risks of toxicity. Initially, the two companies will screen preclinical candidates. No financial details of the agreement were disclosed. 

Trials and Approvals

Clover Biopharma, a commercial-stage vaccine biotech, reported positive data from a Phase I trial of its bivalent RSV prefusion-stabilized F (PreF)-Trimer subunit vaccine candidate (see story). SCB-1019 produced early immunogenicity and safety data in older adult & elderly subjects, similar to results from younger adults (aged 18-59) announced earlier this year.

The Australian Phase Ⅰ clinical trial is a randomized, placebo-controlled study designed to assess the safety, reactogenicity, and immunogenicity of SCB-1019 at multiple dose levels and in different formulations in young and older adults. 

Shanghai Asieris Pharma announced its collaboration with ReviR Therapeutics has identified a novel lead series of small molecules that modulate the expression of an oncogenic driver gene (see story). The molecules, which were part of ReviR's proprietary compound library, can drive inclusion of a cryptic exon into the mRNA of a novel target gene, reducing the disease protein.

ReviR, a San Francisco area biotech, develops small molecule RNA splicing modulators for neurogenetic and oncology indications. Asieris develops novel drugs for genitourinary tumors and related diseases. 

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