China's Sino Biopharm to Acquire Cancer Drugmaker LaNova in $950.9 Million Deal

In a significant move that underscores the growing influence of Chinese pharmaceutical companies in the global biotech landscape, Sino Biopharmaceutical has announced plans to acquire LaNova Medicines, a Shanghai-based cancer drug developer, for up to $950.9 million.

Deal Structure and Financial Details

The acquisition, disclosed on Tuesday, will see Sino Biopharm purchase the approximately 95% of LaNova it does not already own. Taking into account LaNova's cash holdings, the net payment by Sino Biopharm is expected to total about $500 million. Upon completion of the deal, LaNova will become a wholly owned subsidiary of Sino Biopharm, which had previously invested in LaNova's Series C1 financing round announced in October of the previous year.

LaNova's Pipeline and Strategic Partnerships

Founded less than six years ago, LaNova has rapidly built a robust pipeline that includes eight clinical-stage compounds. The company's swift progress reflects the broader trends in China's biotech sector, which has transformed from a copycat industry to an innovative hub attracting interest from multinational pharmaceutical firms.

Two of LaNova's most promising assets have already caught the attention of global pharma giants. In 2023, AstraZeneca licensed an antibody-drug conjugate (ADC) designed by LaNova to target GPRC5D, a protein of increasing interest in multiple myeloma treatment. This deal provided LaNova with an upfront payment of $55 million.

Following this, in November 2024, Merck & Co. secured rights to LaNova's LM-299, a bispecific antibody targeting PD-1 and VEGF. This type of antibody has gained renewed interest following the success of ivonescimab, which outperformed Merck's dominant immunotherapy in a head-to-head lung cancer study. Merck's commitment to LM-299 was substantial, with an upfront cash payment of $588 million to LaNova.

Expanding Clinical Programs

Beyond these partnered assets, LaNova is advancing several other promising candidates through clinical development. Notable among these are an antibody targeting the protein CCR8 for gastric cancer and other solid tumors, currently in Phase 2 trials, and an ADC aimed at Claudin 18.2, which has progressed to Phase 3 trials in China.

The acquisition by Sino Biopharm is expected to provide LaNova with additional resources and support to further advance its pipeline and potentially accelerate the development of these innovative cancer therapies.