The scale of the $8.5 billion deal signed between Innovent Biologics Inc. and Eli Lilly and Co. is eye-catching, but the structure is the real signal. By shifting phase II oncology development to China while reserving global rights ex-greater China, the partners are testing a model that could reshape how multinational drugmakers source innovation as well as how Chinese biotechs create value. Under the deal terms, Innovent will receive a $350 million up-front payment, up to $8.5 billion in development, regulatory and commercial milestone payments, plus tiered royalties on net sales outside China. Innovent will draw on its antibody technology platforms to lead development of programs through clinical proof-of-concept in China. Lilly gains an exclusive license to develop and commercialize the programs worldwide outside greater China.

Global investors optimistic about med-tech exits in 2026

Global investors in med-tech are confident about exit opportunities in the year ahead. The strategics have already started making acquisitions, the IPO window which reopened last year is expected to remain active, and the investment firms have companies in their portfolios that are well-positioned for exit. With fundamentals in the sector still robust, 2026 is expected to reward companies that deliver clear clinical value.

Breye reports positive phase Ib data for oral retinopathy drug

Breye Therapeutics ApS reported positive phase Ib data for its oral gap junction modifier drug danegaptide in diabetic retinopathy and is now raising a €50 million (US$59.6 million) series A round to move into the next phase of development. In the phase Ib trial involving 24 patients with early stage, nonproliferative diabetic retinopathy, orally administered danegaptide showed signs of a positive effect, with retinal imaging data indicating there was a reduction in vascular leakage, a measure that is known to precede reductions in disease severity score. There also were anatomical improvements in the eyes of several patients following the four-week treatment period, and overall there was a significant reduction in edema.

Lilly buying CAR T firm Orna in $2.4B deal

Eli Lilly and Co. is taking over Orna Therapeutics Inc., gaining rights to the latter’s lead drug, a phase I-ready CD19-targeting CAR T therapy for autoimmune disease, as well as a circular RNA platform. Under the terms, Lilly agreed to pay Orna shareholders up to $2.4 billion in cash, including an undisclosed up-front payment and milestones tied to the achievement of certain clinical development efforts. Following last year’s buyout of Verve Therapeutics Inc., the move marks Lilly’s latest move into the in vivo therapy space.

AI meets antibody design: Galux draws $29M series B for drug R&D

“Modalities, not just antibodies, are becoming increasingly complex and artificial,” Galux Inc. Vice President and cofounder Park Tae-yong told BioWorld. “Antibody-drug conjugates (ADCs) and multispecifics, for example, don’t exist in nature.” Multispecifics, for one, are modalities with “hands and arms” attached to capture multiple targets. In the evolving landscape, “it’s impossible to say what the most important modalities will be in the next 30 years, as it will likely be a form that we’ve never seen before,” he said. Galux closed a ₩42 billion (US$29 million) series B round Feb. 10, led by Yuanta Investment to bring AI-driven “rational design” to the protein drug development process, already heavily influenced by human engineering.

Takeda taps Iambic’s AI for small-molecule programs

Iambic Therapeutics Inc. signed a multiyear technology and discovery collaboration agreement with Takeda Pharmaceutical Co. Ltd. that will use the former’s AI models to advance a set of high-priority small-molecule programs, initially in Takeda’s oncology, gastrointestinal, and inflammation areas. Takeda, of Tokyo, will gain access to Neuralplexer, San Diego-based Iambic’s model for predicting protein-ligand complexes. Iambic stands to collect up-front, research cost, and technology access payments, as well as potential milestone rewards in excess of $1.7 billion, plus royalties on any products that result.

Compounded weight-loss drugs hit on every side

True to its word, Novo Nordisk A/S filed a patent infringement lawsuit in U.S. district court against Hims & Hers Health Inc. over compounded versions of Novo’s semaglutide products. The suit is the latest in a pile-on of the telehealth company’s compounding and marketing efforts of what Novo characterizes as “unapproved knock-off versions” of its popular weight-loss and diabetes drugs, Wegovy and Ozempic. Friday, the Health and Human Services Office of Inspector General referred Hims & Hers to the Department of Justice for investigation into potential violations of the Federal Food, Drug and Cosmetic Act. That same day, the FDA announced a crackdown on the compounded drugs that are being mass-marketed. And last week, a bipartisan bill was introduced in the U.S. Senate to rein in the mass production of “risky” compounded drugs.

Med-tech financing off to slow start with $1.52B raised in January

While in 2025 med-tech financings averaged $3.3 billion per month, January 2026 saw the sector bring in $1.52 billion across 39 transactions. It was the lowest monthly total since November 2024’s $924.59 million. However, a number of months last year saw fluctuating values, ranging from $1.65 billion in July to $8.26 billion in December 2025, indicating uncertainty as to how financings might shake out in the sector this year.

Three-stop loop is behind post-myocardial infarction responses

The neural and neuroimmune mechanisms behind myocardial infarction (MI)-triggered cardiac events, immune responses and activation of the nervous system remain largely unexplored. The heart and the brain talk to each other in what is known as cardioception, which is critical for the maintenance of cardiovascular health and where there is neural, immune and endocrine involvement. This communication between the two organs is orchestrated through neurons of the vagus nerve or the dorsal root ganglia, among others. The heart-brain axis is responsive to several pathophysiological factors, such as the immune response following cardiac injury during MI. Researchers from the University of California, San Diego, have now shown that the dynamics of these interactions may play a crucial role in modulating inflammation, repair and cardiac functioning.

Also in the news

Abbott, Akeso, Aro, Bayer, Cerenovus, Clearmind, Cleveland, Coeptis, Denali, Diagnoly, Everest, Field Medical, GE Healthcare, Genesys Spine, GSK, Guard, Hoya Vision, Insilico, Iovance, K36, Kelun‑Biotech, Kite, Lakeshore, Neovac, Neurophet, Nugen, P+F Products and Features, Partner, Pfizer, Polyrizon, Pulse, Roivant, Satellos, Spinal Resources, Spruce, Tharimmune, Uniqure, Veradermics, Zimmer Biomet

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