Healthcare & Life Sciences News & Trends: Nov Week 3

1. Deals

i. BioNTech Acquires China’s Biotheus in US$800m Deal

BioNTech, the German biotech company behind a leading mRNA vaccine for COVID-19, has agreed to acquire Chinese cancer drug developer Biotheus for US$800 million.

Takeaway: This acquisition supports BioNTech’s expansion into cancer therapies using its mRNA technology alongside other therapeutic methods. A key focus will be Biotheus’ drug candidate BNT327/PM8002, which BioNTech secured global rights for outside China. The drug demonstrates the potential to outperform current cancer treatments like checkpoint inhibitors by enhancing the immune system’s ability to fight cancer. With cancer cases rising in China, BioNTech sees significant growth potential in this market.

This deal also highlights a broader trend in which Chinese biotech companies have become targets for cross-border acquisitions, especially by MNCs, due to a lack of domestic funding. Recent transactions focus largely on innovative oncology and autoimmune therapies, underlining global recognition of China’s biotech potential. Biotheus’s development of bispecific antibodies, particularly its PM8002 candidate, is central to this deal, reflecting the high demand for cutting-edge therapies like PD-L1/VEGF bispecific antibodies, which have seen increasing market interest.

The trend of acquisitions is fuelled by the financial struggles of Chinese biotech firms, which face difficulties in fundraising amid market constraints. The acquiring MNCs typically offer all-cash deals with significant premiums, capitalising on their research and commercialisation capabilities. This acquisition trend is accelerating the integration of Chinese biopharma into the global innovation ecosystem.

Meanwhile, domestic mergers and acquisitions in China’s biotech sector are also picking up, with several notable deals aimed at strengthening innovation capacity. These include acquisitions in the metabolic and neurological disease space, and a high-profile merger between two biotech companies. It highlights a shift towards leveraging innovation through acquisitions rather than pure scale expansion. Policy reforms are expected further ease M&A activity further and boost to the industry’s growth.

ii. Merck Buys Chinese Cancer Drug for US$3.3b

Merck secured a promising cancer drug from China’s LaNova Medicines, marking a significant step in expanding its portfolio with dual-targeted antibodies. The deal is valued at up to US$3.3 billion, including an upfront payment of US$588 million, with additional milestone payments of up to US$2.7 billion. The drug, LM-299, is a bispecific antibody currently in phase 1 trials in China. It works by targeting PD-1, similar to Merck’s Keytruda, and VEGF, akin to Roche’s Avastin, providing a dual mechanism to combat cancer.

Takeaway: This acquisition supports Merck’s strategy to diversify beyond Keytruda as the company continues to invest in cutting-edge drug development. Its recent major deals include:

• The acquisition of Prometheus Biosciences, which makes autoimmune treatments;
• Acquisition of Acceleron Pharma, which gave it access to a drug for a rare lung disorder; and
• Cancer drug partnership with Daichii Sankyo.

Interest in bispecific antibodies is growing, especially in the oncology field, and Merck’s move aligns with industry trends toward multi-target therapies.

2. Business Moves

i. GSK Exits Trade Group BIO for 2025, Mirroring Peers

GSK has decided not to renew its membership with the Biotechnology Innovation Organization (BIO) for 2025. However, GSK will remain a member of PhRMA, the Pharmaceutical Research and Manufacturers of America. Its decision follows a trend of exits by large pharmaceutical companies from BIO and PhRMA, organisations historically focused on lobbying for industry interests such as drug pricing, IP protection, and market access.

Takeaway: GSK’s exit possibly reflects growing dissatisfaction with the lobbying effectiveness of these organisations. Over the past year, several major drug companies, including Pfizer, UCB, and Takeda, have also left BIO, citing concerns about the declining impact of these groups in influencing policies, which has put significant pressure on the industry.

BIO’s inconsistent stance during the Biosecurity Act controversy, particularly concerning WuXi AppTec, has also further eroded confidence in the organisation’s ability to protect its members’ interests. With potential shifts in US policy under the next administration, pharmaceutical companies are reassessing the value of their memberships as lobbying returns may no longer justify the costs.

The specifics of President-elect Donald Trump’s plans for the pharmaceutical industry are still uncertain, but analysts anticipate reduced FTC involvement and possible shifts at the FDA. This is based on his pledge to give vaccine sceptic Robert F. Kennedy Jr. more freedom to influence health and medicine policies.

ii. GenScript Launches Operations and Logistics Facility in Sydney

Global biotech company GenScript is expanding its presence in the Asia Pacific region with the opening of a new operations and logistics facility in Sydney, Australia. The Sydney hub will provide crucial logistical support to Australian biotech companies, enabling faster delivery of high-demand products like mRNA and growth factors and helping to overcome challenges such as customs and tax issues.

Takeaway: This move is partly in response to scrutiny from the US government regarding its connections to China.

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Image Credits:

• Medical Dialogues
• XRP Healthcare Magazine