Healthcare & Life Sciences News & Trends: Oct Week 2

1. Business Moves

i. Pfizer and Nvidia Jointly Support Singapore Initiative to Help Startups

Nvidia partnered with Pfizer and companies in Singapore to launch a two-year initiative to support global healthcare startups in Southeast Asia. The collaboration, which is part of the Ignition AI Accelerator programme, will leverage artificial intelligence (AI) and machine-learning tools to enhance drug development processes and enable quicker data analysis.

Takeaway: This initiative connects stakeholders such as government bodies, universities, and accelerators, which can support the development of groundbreaking therapies and advance precision medicine in the region.

ii. Roche Rolls Out China-for-China Production Strategy

Roche plans to expand its manufacturing capacity in China and focus on producing more diagnostic products and medicines for the local market. While Roche will continue to produce drug substances outside of China, its strategy will ensure that the final stages of manufacturing—such as packaging and shipping—occur domestically.

Takeaway: This decision reflects the increasing importance of China as a growth market for the company, especially as geopolitical tensions between the US and China affect global trade. This move aligns with similar decisions by other pharmaceutical companies, like AstraZeneca, to separate supply chains and localise production in key markets.

iii. CR Sanjiu Enters the Vitamin D Market

China Resources Sanjiu (CR Sanjiu) entered a strategic partnership with Dyne Pharma to promote Dyne’s vitamin D capsules. This collaboration disrupts the existing dominance of two major players—Singsha and DoubleWhale—in China’s vitamin D drop market.

Vitamin D deficiency is a significant global health issue, affecting approximately 80% of the Chinese population. The market for Vitamin D drops, a common OTC remedy, has long been dominated by Singsha and DoubleWhale, which jointly hold most of the market share.

Takeaway: Dyne’s vitamin D drops were only approved in 2020, and the late entry resulted in its low market share. Its partner, CR Sanjiu, is a pharmaceutical giant primarily engaged in the research, development, production, sales, and related health services of pharmaceutical products, with its core business focused on consumer healthcare (CHC) and prescription drugs (RX).  It is known for its aggressive acquisition strategy and strong presence in various health sectors, including oncology and paediatrics. Integrating industry resources has enhanced its strength and brand influence while also increasing its business performance. The partnership between two major state-owned enterprises is expected to expand Dyne Pharma’s share of the vitamin D market, disrupting the existing competitive landscape.

2. Deals

i. WhiteCoat to Buy Indonesian Telemedicine Startup Good Doctor

WhiteCoat Global, a digital health provider based in Singapore, is acquiring Good Doctor Indonesia’s telemedicine platform in a landmark merger for Southeast Asia’s telehealth sector. MDI Ventures and the SoftBank Vision Fund are also set to become new investors. WhiteCoat has also recently raised funds via a round led by the Raffles Family Office. While financial details of the acquisition and funding were not disclosed, WhiteCoat aims to establish the largest digital healthcare group in the region by collaborating with over 130 insurers and 7,500 corporate partners.

Takeaway: The acquisition will enhance WhiteCoat’s market position in Indonesia and set the stage for future growth, which may include expanding into additional Asian markets and integrating generative AI into their services.

ii. AstraZeneca Inks US$1.92b Deal with HK-Listed CSPC

AstraZeneca entered a licensing agreement with Hong Kong-based CSPC Pharmaceutical Group, valued at up to $1.92 billion, which includes an upfront payment of $100 million. This partnership will provide AstraZeneca with access to CSPC’s preclinical small molecule, YS2302018, an oral disruptor of Lipoprotein(a) [Lp(a)], intended to be developed as a lipid-lowering therapy.

Takeaway: The asset can potentially tackle key risk factors associated with chronic cardiovascular diseases, either on its own or in combination with other medications. It may, thus, complement AstraZeneca’s existing small molecule PCSK9 inhibitor, AZD0780, which targets dyslipidaemia unresponsive to statins.

iii. Boehringer Bags Circle’s Preclinical Cancer Programme

Boehringer Ingelheim partnered with Circle Pharma in a deal potentially valued at $607 million to secure rights to a preclinical cancer programme focused on macrocyclic peptide therapeutics. Macrocycle molecules have been used in therapy for a decade. While most products and drug candidates are natural products-based, Circle’s adopts a structure-based rational drug design and synthetic chemistry. The biotech garnered interest as it was believed that it could unlock the potential of macrocycle drugs, which are a type of molecule capable of targeting difficult binding sites.

Takeaway: The collaboration aligns well with Boehringer’s oncology strategy. The pharmaceutical company focuses on proteins that drive tumour growth, and this complements Circle’s research, which has identified macrocycles that specifically inhibit cyclin proteins involved in regulating cell division. Throughout its history, Circle has drawn interest from major pharmaceutical companies, securing investments from Eli Lilly after its collaboration with Pfizer. However, it retains ownership of all its disclosed assets.

iv. Merck and Mestag Ink $1.9b Deal to Explore Fibroblast Therapies

Merck & Co. entered into a $1.9 billion deal with Mestag Therapeutics. As part of the deal, both companies will explore innovative therapies for treating inflammatory diseases using fibroblasts, which are now recognised as key players inflammation treatments. Mestag’s platform, launched in 2021, utilises advanced single-cell technology to identify subtle differences in fibroblast populations, offering new therapeutic possibilities.

Takeaway: Merck’s collaboration with Mestag will allow them to license and potentially develop therapies for a select number of targets. Beyond Merck, Johnson & Johnso also inked a two-target deal with the company in 2021, reflecting the growing interest in Mestag’s fibroblast research.

3. People Moves: Eli Lilly and GE

Eli Lilly: Eli Lilly appointed Thomas Fuchs as its first Chief AI Officer. Fuchs, a prominent leadership figure from Mount Sinai, will lead AI efforts in drug discovery, clinical trials, manufacturing, and other commercial and internal operations. His background includes AI innovations in healthcare, such as improving patient diagnosis and treatment. This appointment reflects the broader trend in the pharmaceutical industry, with companies like Pfizer, GSK and Merck already incorporating AI leadership roles. While AI’s potential in drug development is promising, challenges remain around data quality and understanding disease mechanisms.

GE: Kevin Chen has officially joined GE HealthCare as the leader of the Cardiovascular (AVS) business in China. Prior to this, Chen had a 14-year career with Johnson & Johnson (J&J) China, where he held several management positions in the ASP, Endo, Gynecare and Mentor divisions. He was also the General Manager of the cardiovascular and professional solutions division and the head of external affairs and market access. Interestingly, Chen first joined GE HealthCare in 1993 and held several leadership roles in the company until his departure in 2004. His return to GE HealthCare is thus seen as a homecoming. In his new role, he will focus on driving business growth and innovation in the AVS division and developing go-to-market strategies to strengthen product management and local operations.

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Image Credits:

• Whitecoat Global
• Fiercepharma
• CR Sanjiu