Astellas Strikes $1.5B+ Deal with Evopoint for Novel Solid Tumor ADC

Astellas Pharma has entered into a significant licensing agreement with Chinese biotech Evopoint Biosciences, marking another major investment by a global pharmaceutical company in China's burgeoning biotech sector. The deal, potentially worth over $1.5 billion, centers on an innovative antibody-drug conjugate (ADC) targeting solid tumors.

Deal Structure and Financial Terms

Astellas will make an upfront payment of $130 million to Evopoint, with an additional $70 million earmarked for near-term payments. The agreement includes potential milestone payments of up to $1.34 billion, contingent on developmental, regulatory, and commercial successes. Evopoint will also be eligible for royalties on net sales if the product receives approval.

XNW27011: A Promising Anti-Claudin18.2 ADC

At the core of this collaboration is XNW27011, an early-stage ADC designed to target the Claudin18.2 protein, which has recently gained attention as a potential marker for various malignancies. The drug candidate employs a topoisomerase I inhibitor payload, which disrupts DNA replication in cancer cells, leading to cell death.

XNW27011 is currently undergoing a Phase I/II study in China, focusing on patients with Claudin18.2-positive solid tumors, including gastric, gastroesophageal, and pancreatic cancers. Early data from this trial, set to be presented at the 2025 American Society of Clinical Oncology (ASCO) meeting, shows promising results:

• Best overall response rate of 46.7% across all dose groups (2.4, 3.0, and 3.6 mg/kg)
• Disease control rate of 88%
• Generally safe profile, with some dose adjustments due to side effects
• One patient death from pneumonia in the 3.0-mg/kg dose arm

Global Rights and China's Growing Biotech Influence

Under the agreement, Astellas will acquire exclusive worldwide rights to XNW27011, except for the greater China area, where Evopoint will retain ownership. This deal aligns with a growing trend of major pharmaceutical companies seeking innovative candidates from Chinese biotechs.

Recent examples of this trend include:

• Pfizer's $6 billion deal with 3SBio for a PD-1/VEGF bispecific antibody
• Novartis' potential $4 billion investment in Shanghai Argo's RNA interference platform
• Similar multibillion-dollar contracts from Bayer, Merck, Novo Nordisk, and AstraZeneca with Chinese biotechs

The increasing influence of Chinese biotech innovation is further evidenced by Truist Securities' note to investors, which highlighted that nearly a third of presentations at this year's ASCO involve assets originating from Chinese companies.