Pharmaceutical Industry Update: Moderna Scraps Japan Plant, Rexulti Faces Setback, and Pfizer Expands in China

Moderna has abandoned plans to build an mRNA drug substance plant in Fujisawa, Japan, citing changes in the global and Japanese business environment. The company remains committed to providing a stable vaccine supply to Japan through its existing global manufacturing network.

In a significant development for mental health treatments, an FDA advisory committee voted 10-1 against recommending Lundbeck and Otsuka's Rexulti, used in combination with Viatris' Zoloft, for the treatment of post-traumatic stress disorder (PTSD). Despite observing a consistent favorable trend across trials, experts concluded that the evidence was insufficient to support approval.

Pfizer Strengthens Position in China with 3SBio Deal

Pfizer has finalized a licensing agreement for 3SBio's PD-1xVEGF candidate SSGJ-707, which includes a $1.25 billion upfront payment for rights outside China. The deal also grants Pfizer an option to extend the license to cover China, potentially worth an additional $150 million in fees upon exercise.

This move underscores Pfizer's commitment to expanding its presence in the Chinese market and bolstering its oncology portfolio. The PD-1xVEGF bispecific antibody represents a novel approach in cancer immunotherapy, combining immune checkpoint inhibition with anti-angiogenic effects.

Funding and Expansion in Biotech Sector

TCG Labs Soleil has secured $400 million for its second fund, matching the size of its inaugural fund last year. The venture-biotech organization focuses on supporting single-asset biotechs through clinical proof of concept, utilizing its own R&D hub. In a strategic move, TCG Labs Soleil has expanded its R&D footprint to Shanghai, highlighting the growing importance of the Chinese market in global biotech development.

In other funding news, China's Novatim has licensed a BCMA/CD19 dual-targeting CAR-T therapy to Erigen, a company associated with Factor Bioscience. The deal includes $15 million in near-term development milestones, with potential total milestone payments reaching $1.32 billion. The candidate, KQ-2003, is currently undergoing phase 1b testing in China, representing a significant advancement in the field of cell therapy for hematological malignancies.

These developments reflect the ongoing trend of substantial investments in innovative biotechnologies and the increasing collaboration between Western pharmaceutical companies and Chinese biotech firms.