Global drugmakers deepen partnerships with Chinese biotech firms
AstraZeneca, Merck and Novo Nordisk have announced agreements involving Chinese biotechnology companies, highlighting international interest in the sector’s cancer and weight-loss treatments. The deals include AstraZeneca’s $2 billion investment in Summit Therapeutics and Novo’s potential $2.6 billion licensing agreement with Hengrui.
Global pharmaceutical companies have announced several agreements involving Chinese biotechnology firms, increasing attention on the sector’s cancer and weight-loss drug development. AstraZeneca said on Tuesday it would make a $2 billion equity investment in Florida-based Summit Therapeutics, which holds rights outside China to develop and commercialise Akeso’s immunotherapy drug ivonescimab. Summit and AstraZeneca plan to begin clinical trials combining the drug with AstraZeneca antibody-drug conjugates.
Akeso’s Hong Kong-listed shares rose 15.5 per cent after the announcement, while Summit gained more than 19 per cent in after-hours trading. Jefferies analyst Cui Cui said the partnership strengthened the bank’s view that ivonescimab could become a foundational immunotherapy when used with other medicines. Danish drugmaker Novo Nordisk also announced an agreement to license Hengrui Pharmaceuticals’ oral GLP-1 weight-loss drug HRS-1596.
The deal could be worth up to $2.6 billion, including a $300 million upfront payment. Hengrui’s Hong Kong shares closed 1.9 per cent higher. The developments followed Merck’s agreement to pay up to $2.13 billion for worldwide rights to develop, manufacture and commercialise SPR2015, a pre-clinical oral cancer drug created by Shanghai start-up SciBrunch Therapeutics.
Merck will pay $400 million upfront, according to the companies. SciBrunch, founded in 2024, focuses on small-molecule oncology therapies. SPR2015 targets KRAS G12D, a common cancer mutation, and is described as a molecular glue that directs disease-causing proteins to a cell’s waste-disposal system.
Macquarie Capital analyst Tony Ren said the Merck agreement was unusually large for a pre-clinical asset and reflected Chinese biotech’s progress in molecular glues and protein degraders. The supplied material attributed the sector’s global momentum to domestic policy support and easing concerns about possible US restrictions, while noting that clinical success remains to be established for the cited treatments.
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