Sino Biopharm Acquires LaNova Medicines in $951M Deal, Bolstering Oncology Pipeline

Sino Biopharmaceutical, a leading Chinese pharmaceutical company, has announced its acquisition of LaNova Medicines for up to $951 million, marking a significant development in the oncology drug development landscape. The deal, which involves Sino Biopharm purchasing the remaining 95.09% stake in LaNova, comes on the heels of several high-profile partnerships between Chinese biotechs and Western pharmaceutical giants.

Strategic Acquisition Strengthens Sino Biopharm's Oncology Portfolio

Sino Biopharm's move to acquire LaNova Medicines is a strategic step to enhance its position in the competitive oncology market. LaNova, known for its innovative antibody platforms, has garnered attention for its focus on the tumor microenvironment, targeted antibodies, antibody-drug conjugates (ADCs), and T-cell engagers.

The acquisition brings several promising candidates into Sino Biopharm's pipeline, including:

• LM-299, a PD-1xVEGF bispecific antibody partnered with Merck & Co.
• LM-305, a GPRC5D-targeting ADC licensed to AstraZeneca
• A CCR8 antibody in phase 2 registrational trials in China
• A Claudin 18.2 ADC in phase 3 development

This deal represents a milestone in China's biotech sector, as it is one of the few instances where a major Chinese pharmaceutical company has fully acquired an innovative domestic biotech firm.

Rising Trend of PD-(L)1xVEGF Bispecific Antibodies

The acquisition highlights the growing interest in PD-(L)1xVEGF bispecific antibodies within the pharmaceutical industry. LaNova's LM-299, partnered with Merck & Co., is part of a wave of similar deals involving Chinese-originated assets:

• Merck & Co. agreed to pay $588 million upfront and up to $2.7 billion in milestones for LaNova's LM-299
• Pfizer inked a $1.25 billion upfront deal for 3SBio's SSGJ-707
• Bristol Myers Squibb pledged $3.5 billion upfront to co-develop and co-commercialize BioNTech's PD-L1xVEGF bispecific

These transactions underscore the potential of PD-(L)1xVEGF bispecifics as possible successors or complements to established checkpoint inhibitors like Merck's Keytruda.

Financial Implications and Industry Impact

The LaNova acquisition, valued at up to $951 million, represents a significant investment for Sino Biopharm. With approximately $450 million in cash on its balance sheet, the net payment for the deal is around $501 million. This transaction follows Sino Biopharm's initial $20 million investment for a 4.91% stake in LaNova in November.

Sino Biopharm, which recorded total revenue of 28.9 billion Chinese yuan (about $4 billion) in 2024, with 37% coming from oncology medicines, is poised to strengthen its market position through this acquisition. The deal not only expands Sino Biopharm's pipeline but also secures partnerships with industry leaders like Merck & Co. and AstraZeneca, potentially paving the way for future collaborations and licensing agreements.

As Chinese biotechs continue to make waves in the global pharmaceutical landscape, this acquisition by Sino Biopharm demonstrates the growing capacity of Chinese companies to lead in innovative drug development and strategic industry consolidation.