Lepu Biopharma Inks $857M Deal for T-Cell Engagers with New Caribbean Company

In a significant move that underscores the growing interest in T-cell engager technology, China's Lepu Biopharma has entered into a lucrative agreement with a newly formed Caribbean company, Excalipoint. The deal, announced on August 1, 2025, involves the out-licensing of two preclinical T-cell engager assets and carries a potential value of up to $857 million.

Deal Structure and Financial Terms

Excalipoint, incorporated in the Cayman Islands, will pay Lepu Biopharma an upfront sum of $10 million for the rights to two preclinical assets, CTM012 and CTM013. The agreement includes potential development and commercial milestones totaling $847.5 million, as well as royalties on future sales.

In an interesting twist, Lepu Biopharma is not merely divesting these assets but is also investing in Excalipoint. Through a subsidiary, Lepu will acquire a 10% stake in the new company, demonstrating confidence in the potential of these T-cell engagers and the strategic direction of Excalipoint.

Excalipoint's Emergence and Funding

Excalipoint's entry into the T-cell engager space is bolstered by a successful Series A funding round, which raised $41 million. The round was led by YuanBio Venture Capital and Apricot Capital, providing the new company with a strong financial foundation to advance the development of its newly acquired assets.

Asset Details and Strategic Implications

The two assets at the center of this deal, CTM012 and CTM013, were developed using Lepu's proprietary TOPAbody platform. While specific targets remain undisclosed, Lepu has revealed that CTM012 has already obtained investigational new drug (IND) approval and is being positioned for solid tumor indications.

For Lepu Biopharma, this transaction aligns with its strategic focus on late-stage product commercialization and core R&D efforts. The company views the deal as an opportunity to monetize early-stage assets while expanding its global reach. This approach is part of a broader trend among Chinese biotechs, often referred to as the "NewCo" model, where companies form new entities outside of China to develop early-stage assets.

Industry Context and T-Cell Engager Landscape

The Lepu-Excalipoint deal reflects the pharmaceutical industry's intense interest in T-cell engager technology. This year alone has seen significant activity in this space, with major players like AbbVie making substantial investments. In January, AbbVie acquired a phase 1 T-cell engager asset from China's Simcere Zaiming, followed by a multi-program collaboration with Xilio Therapeutics in February.

As the field becomes increasingly competitive, deals like this highlight the global nature of biotech innovation and the strategic importance of T-cell engagers in the evolving landscape of cancer therapeutics.