Sino Biopharm Acquires LaNova Medicines in $951M Deal, Bolstering PD-1xVEGF Pipeline

In a significant move that underscores the growing importance of bispecific antibodies in oncology, Sino Biopharmaceutical has announced its acquisition of LaNova Medicines for up to $951 million. This deal marks a pivotal moment in China's biotech landscape, as it represents one of the first instances of a major Chinese pharmaceutical company fully acquiring an innovative domestic biotech firm.

Strategic Acquisition Strengthens Sino Biopharm's Oncology Portfolio

Sino Biopharmaceutical, one of China's largest drugmakers with 2024 revenue of approximately $4 billion, will acquire the remaining 95.09% stake in LaNova Medicines. This follows an initial investment of about $20 million for a 4.91% interest made in November. The net payment for the acquisition is estimated at $501 million, considering Sino Biopharm's current cash holdings.

LaNova Medicines has gained prominence in the pharmaceutical industry through its partnerships with global giants Merck & Co. and AstraZeneca. The company's most notable asset is LM-299, a PD-1xVEGF bispecific antibody that Merck licensed in November for $588 million upfront, with potential milestone payments of up to $2.7 billion.

Bispecific Antibodies: A New Frontier in Cancer Treatment

The acquisition of LaNova Medicines positions Sino Biopharm at the forefront of the PD-(L)1xVEGF bispecific antibody wave that has captivated the pharmaceutical industry. This trend has seen several high-profile deals in recent months:

• Pfizer's $1.25 billion upfront agreement to license 3SBio's PD-1xVEGF candidate SSGJ-707
• Bristol Myers Squibb's $3.5 billion upfront commitment to co-develop and co-commercialize BioNTech's PD-L1xVEGF bispecific

These transactions highlight the industry's growing interest in bispecific antibodies that target both PD-1/PD-L1 and VEGF pathways, potentially offering improved efficacy in cancer treatment.

LaNova's Diverse Pipeline and Technological Platforms

Beyond the headline-grabbing PD-1xVEGF asset, LaNova brings a rich pipeline and technological capabilities to Sino Biopharm:

• A GPRC5D-targeting antibody-drug conjugate (ADC) licensed to AstraZeneca in a deal worth up to $600 million
• A CCR8 antibody in phase 2 registrational trials in China
• A Claudin 18.2 ADC in phase 3 development
• Various early-stage candidates, including an anti-SIRPa antibody, a CTLA-4 tumor microenvironment-specific antibody, and two 4-1BB bispecifics

LaNova's expertise spans antibody platforms focused on the tumor microenvironment, targeted antibodies, ADCs, and T-cell engagers, significantly expanding Sino Biopharm's technological capabilities in these areas.