Sino Biopharm Acquires LaNova Medicines in $951 Million Deal, Strengthening Cancer Drug Pipeline

In a significant move that reshapes the landscape of cancer drug development, Shanghai-based LaNova Medicines has agreed to be acquired by fellow Chinese company Sino Biopharmaceutical in a deal worth up to $951 million. This acquisition, announced on Tuesday, brings together two key players in the rapidly evolving Chinese biotech sector and has implications for several major Western pharmaceutical companies.

Acquisition Details and Financial Impact

Sino Biopharmaceutical, which already held a 4.91% stake in LaNova, will purchase the remaining 95.09% equity interest for a net payment of nearly $501 million. This figure excludes LaNova's current estimated cash and bank deposits of $450 million. The transaction is subject to shareholder approval and relevant legal clearances under Chinese law, with closure expected within 30 business days after all conditions are met.

LaNova's Strategic Partnerships and Pipeline

LaNova Medicines, founded less than six years ago, has rapidly built a robust pipeline that has attracted attention from global pharmaceutical giants. The company's portfolio includes eight clinical-stage compounds, with two notably licensed to major Western pharma companies:

1. In November 2024, Merck secured global rights to LaNova's investigational bispecific antibody LM-299 for solid tumors. The deal included a $588 million upfront payment and potential milestone payments of up to $2.7 billion.

2. In May 2023, AstraZeneca partnered with LaNova on the antibody-drug conjugate LM-305, targeting the GPRC5D protein for multiple myeloma. This collaboration involved a $55 million upfront payment and up to $545 million in potential milestones.

Implications for Cancer Drug Development

The acquisition brings Sino Biopharmaceutical a pipeline rich in innovative cancer therapies, including antibody-drug conjugates (ADCs) and bispecific antibodies. Key assets in LaNova's late-stage pipeline include:

• LM-302: An ADC for gastric cancers in Phase III trials
• LM-108: A monoclonal antibody against tumors with high microsatellite instability, also in Phase III
• LM-299: A bispecific antibody targeting both PD-1 and VEGF pathways, designed to prevent tumors from evading the immune system and forming new blood vessels

This deal reflects the growing prominence of Chinese biotechs in developing cutting-edge cancer therapies, with LaNova's emergence paralleling the rapid gains made by China's biotech sector over the past decade. The acquisition not only strengthens Sino Biopharm's position in the oncology market but also potentially impacts the strategic plans of Merck and AstraZeneca, who have significant stakes in LaNova's drug candidates.