SINO BIOPHARM has announced that a significant business development will be revealed soon, and it is expected that more heavyweight trades will be completed by the end of this year or the beginning of next year; this year, the overseas achievements of companies like 3SBIO, CSPC PHARMA, and SINO BIOPHARM have ignited the secondary market for innovative drugs; the global value of domestically produced innovative drugs continues to be realized, with a revaluation underway.
According to a report on June 12 by Financial Association News (Reporter: Lu Afin), the 'Deepseek moment' for China's innovative drugs seems to have arrived.
Following $3SBIO (01530.HK)$ the sky-high BD for dual antibodies$Pfizer (PFE.US)$、 $CSPC PHARMA (01093.HK)$ After announcing that three BD projects are underway, a heavyweight player has joined the trend of Chinese innovative drugs going abroad. Today's reporter from the Financial Alliance News learned that $SINO BIOPHARM (01177.HK)$ At the 46th Goldman Sachs Global Healthcare Conference held in Miami, it was revealed that multiple products have received cooperation intentions since the beginning of the year, and at least one heavyweight out-license deal will be finalized this year.
This series of events has dropped shockwaves in the field of innovative drugs, stirring huge ripples throughout the entire industry, attracting global market attention, and filling people with expectations for the future of Chinese innovative drugs.
At least one major business development trade is anticipated this year.
On June 11, at the 46th Goldman Sachs Global Healthcare Conference held in Miami, USA, Lei Ming, head of SINO BIOPHARM's Capital Markets, announced that since the beginning of the year, external licensing trades have become one of the company's key strategic goals. Currently, several of the company's assets have potential for external licensing, expected to further expand 'international income' and open a second growth curve. He stated, 'Recently, one of these assets will generate a landmark heavyweight external licensing trade, and we look forward to disclosing relevant progress to the market.'
Lei Ming also disclosed, 'We are confident in achieving this goal quickly, and with our extensive pipeline, more heavyweight trades are expected to be completed by the end of this year or the beginning of next year.' In his view, external licensing poses the largest expectation difference for SINO BIOPHARM's stock price. Currently, the seller's model for SINO BIOPHARM has not yet incorporated expectations for business development income, but starting in 2025, business development trades will become a regular source of income and profits for the company. According to market guidance at the beginning of the year, at least one significant license-out trade is expected to land this year.
In fact, SINO BIOPHARM is not the first Chinese innovative drug company to initiate a 'pre-announcement business development'. As early as May 30, CSPC PHARMA announced that potential transactions totaling approximately 5 billion USD would be reached, with the earliest one to be announced by the end of this month. The market finds this model quite novel, and from May 30 to now, CSPC PHARMA's stock price has increased by 17.51%.
After the relevant news was announced at the aforementioned conference, the stock price of SINO BIOPHARM surged at the opening, with an increase of nearly 15% as of the time of reporting.
SINO BIOPHARM revealed to the reporter from the Financial Associated Press that the company has internally sorted potential products for external licensing and has started reaching out externally according to priority. Multiple products have received cooperation intentions since the beginning of the year, with potential partners including leading multinational pharmaceutical companies and prominent innovative drug enterprises. The company has several Assets with potential for external licensing, including PDE3/4, HER2 bispecific antibodies, HER2 bispecific antibody ADC, FGF21, EGFR/cMET ADC, fourth-generation EGFR, as well as some early-stage projects such as oral GLP-1 and PDE4b.
Just a few days ago, SINO BIOPHARM's PDE3/4 inhibitor TQC3721 was approved by the Center for Drug Evaluation (CDE) of the National Medical Products Administration (NMPA) on June 9 to conduct Phase III registration clinical research for the maintenance treatment of chronic obstructive pulmonary disease (COPD), and its development progress ranks second globally.
In addition, SINO BIOPHARM has also made in-depth layouts in ADC and bispecific antibody fields. Currently, the company's HER2 bispecific antibody ADC TQB2102 has been approved by CDE to conduct Phase III registration clinical research for neoadjuvant treatment of HER2-positive breast cancer; the clinical application for EGFR/cMet bispecific antibody ADC TQB6411 has also been accepted. In the EGFR area, the company has EGFR/cMet bispecific antibody TQB2922 entering the Phase I clinical expansion stage, and the fourth-generation EGFR inhibitor TQB3002 was approved to conduct clinical trials in the United States in November last year.
At the recently concluded 2025 American Society of Clinical Oncology (ASCO) Annual Meeting, SINO BIOPHARM released a total of 12 oral reports, of which 4 were LBAs (late-breaking abstracts), setting a historical high for Chinese pharmaceutical companies.
Among them, the "DeFu combination (bemarituzumab combined with anlotinib)" achieved a significant breakthrough in PFS (progression-free survival) in the first-line PD-L1 positive non-small cell lung cancer Phase III clinical trial, particularly benefiting significantly among the population with high PD-L1 expression (TPS ≥ 50%); the "DeFu combination" also achieved breakthroughs in PFS in the head-to-head study of tremelimumab combined with chemotherapy for first-line squamous non-small cell lung cancer (sq-NSCLC); anlotinib showed sustained growth potential in multiple indications including triple-negative breast cancer and colorectal cancer; several products including HER2 bispecific antibody ADC, CCR8 monoclonal antibody, and PD-1/TGF-β bispecific antibody have also received positive feedback on their clinical data.
Is the moment for Chinese innovative drugs "Deepseek" arriving?
Since the beginning of this year, multiple Chinese innovative drug companies have announced significant BD projects covering cutting-edge fields such as ADC, bispecific antibodies, and small nucleic acids.
For example, on May 20, 3SBIO exclusively granted global (excluding mainland China) development, production and commercialization rights of its self-developed PD-1/VEGF bispecific antibody SSGJ-707 to Pfizer, with a total transaction amount of up to 6.05 billion USD and an upfront payment of 1.25 billion USD; on May 30, CSPC PHARMA announced that three potential transactions totaling approximately 5 billion USD will be reached, including the EGFR-ADC product; on March 24,$UNITED LAB (03933.HK)$authorized global rights outside of Greater China for the GLP-1/GIP/GCG (GGG) receptor agonist UBT251 to$Novo-Nordisk A/S (NVO.US)$and received an upfront payment of 0.2 billion USD, a milestone payment of 1.8 billion USD, and a certain percentage of sales royalties.
$Shanghai Junshi Biosciences Co., Ltd. (688180.SH)$is generally regarded in the industry as a potential BD "seed."$JUNSHI BIO (01877.HK)$The company has previously informed reporters from CaiLianShe: "The company maintains an open and proactive attitude toward various types of business cooperation and hopes to achieve globalization through organic development and strategic partnerships. If any relevant business cooperation matters meet the information disclosure standards in the future, the company will strictly fulfill its information disclosure obligations in a timely manner in accordance with relevant laws and regulations and regulatory requirements."
According to data from the Medical Magic Cube, in the first quarter of 2025, there have been 41 license-out transactions for innovative drugs in China, with a total amount reaching 36.929 billion USD, which in just three months is close to the total level for all of 2023 and has already exceeded the total amount of transactions in the first half of 2024.
This series of overseas actions has ignited the recent market for the innovative drug Sector.$GF CSI HK Innovative Drugs Industry ETF(QDII) (513120.SH)$Since the beginning of this year, the increase has been about sixty percent, with significant rises in related stocks such as 3SBIO and CSPC PHARMA.
According to statistics, from 2015 to 2024, the active innovative drug pipelines of local Chinese companies surged from hundreds to 3,575, ranking first in the world for the first time. Among them, SINO BIOPHARM ranks 15th globally and 2nd among Chinese pharmaceutical companies with 125 projects under research, and its self-developed pipeline has surpassed multinational pharmaceutical giants such as AbbVie and Takeda.
Industry experts told reporters from the Financial Associated Press that with the occurrence of related BD transactions for 3SBIO, PumiSi, and others, this will enhance domestic innovative drug companies' confidence in continuing to invest in research and development and in their future overseas expansion, while also raising expectations for BD negotiations with MNCs.
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