Tightening of U.S. regulation and capital is leading Chinese biotechs to alternative and new models of financing, ranging from cross-border licensing deals, M&As, the so-called newco model and overseas listings.
“They are not zombies, they are fallen angels.” That is view of Nick Johnston, a U.K-based banker who has come up with a new plan to rescue listed companies whose market capitalizations have fallen below the cash in hand after failures in clinical development programs.
Europe was a bigger counterpart to China in pharmaceutical dealmaking than the U.S. last year, speakers at Chinabio Partnering Forum said April 23, and the trend is likely to continue in 2025 with the shuttering of U.S. capital and volatility ailing global markets.
Synthetic lethality specialist Tessellate Bio NV has closed its first deal, agreeing to a €500 million-plus (US$570 million) research and license agreement with Boehringer Ingelheim GmbH, to develop small molecules targeting tumors that depend on alternative lengthening of telomeres (ALT) for their growth.
Veraxa Biotech AG is merging with special purpose acquisition company (SPAC) Voyager Acquisition Corp. to become a publicly traded company that will develop treatments for solid tumors.
Biopharma deal value declined in the first three months of 2025 compared to the previous quarter, but remained above the 2024 quarterly average of $57.63 billion. In the first quarter (Q1), biopharma deals totaled $66.86 billion across 330 transactions, a decrease from $80.65 billion in Q4 2024, which saw 372 deals. However, this was a significant value increase from Q1 2024, when deals amounted to $44.32 billion across 376 transactions.
Earendil Labs will collaborate with Sanofi SA in a $1.8 billion license deal. Earendil, which specializes in artificial intelligence-based R&D for biologics, is getting $125 million up front and $50 million as a near-term payment. In return, Sanofi gets the exclusive global rights to the bispecific antibodies HXN-1002 and HXN-1003.
The Abu Dhabi health care company M42 is to make an investment in U.K.-based longevity specialist Juvenescence as a route to moving into drug discovery and development, with the two forming a partnership to work together on products that extend the healthy lifespan and improve the treatment of chronic diseases.
After dropping development in December of its lead program, Spruce Biosciences Inc. has found new life by acquiring a BLA-ready enzyme replacement therapy for the rare genetic neurodegenerative disease Sanfilippo syndrome type B. If approved, the therapy, tralesinidase alfa, could bring Spruce a priority review voucher.
Oral peptide delivery specialist Cyprumed GmbH is about to find out if the high bioavailability of its tablet formulations seen in animal models will translate across to humans, after signing a $493 million license and option agreement with Merck & Co. Inc.
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