Healthcare & Life Sciences News & Trends: Nov Week 1

1. Markets

Shanghai announced an action plan for 2024 to 2027 to propel local biopharmaceutical firms onto the global stage. The initiative involves:

• Supporting their efforts to gain regulatory approvals from bodies like the FDA and EMA.
• Generating $7 billion in medical product exports by 2027, with ambitions for three Shanghai-based companies to each achieve $1.4 billion in overseas sales annually.
• Emphasising R&D in advanced areas, including synthetic biology, cell and gene therapy, nucleic acid drugs, brain-computer interfaces, and AI-driven pharmaceuticals.
• Providing additional support to facilitate the establishment of international R&D centres and collaborative partnerships with top global research institutions

Takeaway: Shanghai’s initiative seeks to reduce China’s dependence on imported medical products.

2. Business Moves

i. AbbVie to Buy Aliada for US$1.4b

AbbVie announced plans to acquire Aliada Therapeutics for US$1.4 billion in cash. The move enables it to secure access to ALIA-1758, an investigational Alzheimer’s treatment with potential to be a leading therapy. ALIA-1758 leverages a transferrin protein-based drug delivery mechanism to cross the blood-brain barrier, a breakthrough for CNS drugs, which traditionally struggle to reach affected brain areas. The platform could advance therapies for Alzheimer’s by targeting and clearing amyloid beta plaques, one of the primary pathological markers of the disease. The move comes as AbbVie aims to capture the growing therapeutic market for Alzheimer’s, which is projected to nearly double by 2060.

Takeaway: This acquisition aligns with AbbVie’s strategic pivot toward neuroscience, a focus sharpened as Humira sales declined following the introduction of biosimilars. AbbVie has already invested heavily in this direction and has previously acquired Cerevel Therapeutics and ImmunoGen for nearly US$19 billion this year to expand its CNS and cancer treatment portfolios.

ii. Eli’s Weight Loss Drugs Approved for Launch in Hong Kong

Eli Lilly is set to launch its injection drug Mounjaro (tirzepatide) in Hong Kong by year-end. The device, named Kwikpen, is a GLP-1 therapy for weight management and type 2 diabetes. While Mounjaro has already been approved for use in China, the company has yet to announce its release date. Lilly’s main competitor, Novo Nordisk, currently offers diabetes treatment in Hong Kong and mainland China, but its weight-loss formulation isn’t available yet.

Takeaway: Given the global popularity of effective GLP-1 weight-loss drugs like Mounjaro and Wegovy (by Novo), Lilly’s Hong Kong launch could drive strong demand and attract mainland Chinese customers, who currently face limited availability and rely on grey market alternatives. Novo Nordisk, meanwhile, plans to limit the initial sales of Wegovy in China.

iii. GSK Invests $300m in Clinical-Stage T-cell Engager

 GSK is investing $300 million upfront in a partnership with Chimagen Biosciences for CMG1A46, a T-cell engager that could address systemic lupus erythematosus (SLE) and lupus nephritis. The candidate targets CD19- and CD20-positive B cells. It is in early trials for leukaemia and lymphoma but shows promise for B-cell-driven autoimmune diseases and related conditions. GSK could pay an additional $550 million if milestones are met. Unlike existing lupus treatments, CMG1A46 has a unique IgG-like structure and high affinity for B cells, which may allow it to reduce toxicity often associated with T-cell therapies.

Takeaway: If successful, GSK’s new lupus treatment could offer hope for patients with severe forms that resist current therapies, further expanding its autoimmune portfolio. It aligns with recent competitive developments in lupus therapies, such as AbbVie’s Rinvoq and Bristol Myers Squibb’s Sotyktu. It adds to GSK’s success with Benlysta, the first FDA-approved lupus drug launched in 2011.

3. People Moves

i. Western Firms: Parexel and Philips

Parexel: Contract Research Organisation Parexel appointed Keri Mattox as its new Chief Business Officer to oversee business operations and growth strategies. Mattox has over 25 years of experience in the pharmaceutical and healthcare industry, and his expertise is in corporate strategy, investor relations, communications, and ESG. Before joining Parexel, she held senior roles at Zimmer Biomet, W2O Group (now Real Chemistry), Cencora, Endo International and Auxilium Pharmaceuticals.

Medtronic: Medtronic appointed Dr. Matthew Kroh as the Chief Medical Officer (CMO) for its Advanced Surgical Technologies and General Surgical Technologies divisions. Dr. Kroh is a board-certified general surgeon and an expert in laparoscopic, bariatric surgery, and surgical endoscopy. He will focus on driving new product development, enhancing clinical insights, and strengthening relationships with physicians and medical societies globally. Dr. Kroh’s background includes pioneering minimally invasive surgical techniques and contributing to numerous clinical trials. He remains an active surgeon at the Cleveland Clinic while leading innovation at Medtronic.

Philips: Philips announced leadership changes across multiple departments for its Greater China operations, effective November 15, 2024.

• Tao Li, the Head of Government Affairs for Greater China, will retire. He will be succeeded by
• Ada Zhang, the current Director of Government and Public Affairs, will succeed him. Zhang joined Philips in 2016 from Pfizer, where she had worked for nine years as a Government Affairs Manager.
• Scott Cheng, Head of Medical Systems Central Market and Performance Management & Planning for Greater China, will leave the company. The Performance Management and Planning team will report to Minnie Xu, Head of Business Operations for Greater China following his departure.

ii. Chinese Firms: Hengrui, CR Sanjiu, CR Double Crane

Hengrui: Hengrui Pharmaceuticals added Jens Bitsch-Norhave, a veteran from Johnson & Johnson, as Global Head of Corporate Development.

• Bitsch-Norhave has 20 years of BD experience in MNC pharmaceutical settings and is renowned in the US BD community. He will be based in Boston and was already involved with several Hengrui BD projects before joining the company.

This marks the first time a foreign national has led BD at Hengrui, hinting at a shift in the company’s priorities towards expanding overseas BD. In recent years, Hengrui has consistently strengthened its BD focus and closed several key deals, including a newco project that licensed out GLP-1 products to Hercules (now Kailera Therapeutics). Newco’s feasibility suits Chinese biotech firms facing funding challenges and local market limitations as it can help firms overcome regulatory and commercialisation hurdles in the US.

Hengrui’s approach ALSO reflects a broader industry interest. Following Hengrui’s example, US investors are increasingly keen to structure newco deals, viewing China’s extensive pipeline as a more value-for-money opportunity. Hengrui’s commitment to change is also reflected in its international hiring strategy.

In January 2023, former CStone Pharmaceuticals founder Jiang Ningjun joined as VP and CSO. This differs from Hengrui’s tradition of promoting from within. Under Jiang’s leadership, Hengrui executed five license-out deals in 2023, signalling a more dynamic and outward-looking BD approach. Following this momentum, Zhang Su, formerly of Pfizer, executed the impactful newco deal that set a precedent for China’s biopharma BD strategy.

CR Sanjiu: Vice President Wang Yanfei will be resigning from his position due to work arrangements. After resigning, Wang Yanfei will continue to hold other positions within China Resources Sanjiu. Concurrently, Director Yang Xudong will also leave and will no longer hold any position within the company.

CR Double Crane: Zhao Qian was appointed the company’s President and legal representative. Zhao Qian has also been approved to serve as a director of the company’s 10th Board of Directors, and Yang Zhanyao will no longer hold the position of director. Prior to joining China Resources Double Crane, Zhao Qian served as the Deputy General Manager of Hubei Jichuan Pharmaceutical.

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Image Credits:

• Mike Blake (MedWatch)