Healthcare & Life Sciences News & Trends Recap: July Week 3

1. Market: Global Drugmakers Eye Deals in China Amidst Sino-US Tensions

Global drugmakers are actively seeking deals in China to strengthen their drug pipelines and expand their presence in the world’s second-largest pharmaceutical market. The trend is despite the increasing Sino-US tensions. Notable deals in 2024 include AstraZeneca’s US$1.2 billion acquisition of Gracell Biotechnologies and Novartis’ purchase of the remaining shares of SanReno Therapeutics. Companies like Bristol Myers Squibb and Sanofi are also pursuing acquisitions. This foreign interest is beneficial for local firms and investors facing tighter IPO regulations and funding challenges. However, political and economic risks in China remain a concern. Despite these challenges, China remains a significant target due to its large consumer market and innovative biotech sector.

Read the full article about global drugmakers’ interest in China.

2. Business Moves

i. Pfizer Extends its Singapore Plant for Producing APIs

Pfizer launched a S$1 billion facility in Tuas, Singapore, to produce active pharmaceutical ingredients (APIs) for various medicines. The job is expected to create over 250 skilled jobs by 2026. This facility covers 429,000 square feet and has already filled 230 roles, with locals making up 80% of the workforce. The highly automated plant will produce 11 types of API, seven of which are already produced in Pfizer’s first site. The APIs include those for its best-selling breast cancer drug, Ibrance. Pfizer will shift the production for the other four APIs to Singapore after their initial launch in Ireland.

Read the full article about Pfizer’s extended API plant in Singapore.

ii. J&J Veterans Launch Biotech Company Third Arc Bio

A group of former Johnson & Johnson executives has launched a biotech company called Third Arc Bio. Established with $165 million in funding to develop multifunctional antibodies for treating solid tumours and autoimmune diseases. The company was founded by Sanjaya Singh, PhD, co-inventor of AbbVie’s Skyrizi and former global head of Janssen Biotherapeutics at J&J. He brought on:

• Joe Erhardt, Ph.D., as COO.
• Peter Lebowitz, M.D., Ph.D., as CEO.
• Debi Watson as chief business officer.

All c-suites have extensive experience at J&J. Third Arc aims to leverage multifunctional antibodies, which can simultaneously target multiple biological mechanisms. Over the past decade, this strategy has become a key focus in drug development. The company has secured investment from prominent firms, including Vida Ventures and Goldman Sachs Alternatives. It plans to begin multiple clinical trials early next year to advance its programs in oncology and immunology.

Read the full article about Third Arc Bio.

iii. BeiGene Eyes Biologics Deals for New US R&D Centre

BeiGene opened a new 42-acre campus in Hopewell, New Jersey, with the aim of establishing partnerships in biologics. The facility, originally owned by Bristol Myers Squibb, includes 400,000 square feet for production and R&D, with a capacity of two million vials per year and 125 employees, and offers room for future expansion. CEO John Oyler emphasised BeiGene’s expertise in biologics and interest in co-development and co-commercialisation rather than becoming a contract development and manufacturing organisation (CDMO). Despite BeiGene’s strong ties with China, the company was initially founded in the US and aims to be a global player in the biologics field. This new site is part of BeiGene’s strategy to bring its manufacturing capabilities in-house and reduce reliance on external partners.

Read the full article about BeiGene’s interest in biologics deals.

iv. Triastek and BioNTechSE Collaborate for 3D-Printed RNA Therapeutics

BioNTech and Triastek have formed a partnership to develop 3D-printed oral RNA therapeutics. Triastek will use its advanced 3D printing technology to design innovative oral tablets that enhance the delivery and absorption of RNA therapeutics in the gastrointestinal tract. Triastek will receive an initial payment of $10 million and could earn over $1.2 billion in milestone payments, and tiered royalties from future sales.

This collaboration marks the first international technological platform partnership in Chinese pharmaceutical history. It also sets a new record as a partnership of the largest value in dollars in the global drug delivery field.

Triastek is the only specialised 3D-printing pharmaceutical company in China and the only Chinese pharmaceutical company selected for the FDA’s emerging technology programme. The company holds multiple global firsts in the 3D-printing drug field. It has over 233 patent applications, representing over 20% of global patents in this area, and has the most comprehensive patent portfolio.

Read the full article about Triastek and BioNTechSE’s collaboration.

Read the full Chinese analysis of Triastek and BioNTechSE’s collaboration.

v. Embecta Considers Potential Sale

Embecta, one of the largest global companies specialising in insulin syringes and pen needles, is considering a potential sale and has hired Centerview Partners as advisers. This follows a significant decline in its share price since it spun off from BD in 2022. With a current market cap of $878.9 million and shares down over 60% from its initial public offering, Embecta faces investor uncertainty regarding its competitiveness and sales growth. Despite these challenges, it has a strong market position and healthy operating margins and is near the end of its transition from BD. The Financial Times suggests Embecta could attract private equity interest due to its low market value and resemblance to other recently sold companies in the sector.

Read the full article about Embecta’s sale.

vi. Dental Firm Osstem Considers Acquisition of Zimvie

Osstem Implant, a dental firm, is in advanced talks to acquire Zimvie, according to Bloomberg. Osstem has submitted a final bid and secured financing for the potential deal, though no financial terms were disclosed. Zimvie, which spun out of Zimmer Biomet in 2022 and sold its spine business for $375 million less than a year ago, is now reportedly considering selling its dental implant business. This follows Bloomberg’s earlier report in June about Zimvie being approached by strategic investors and industry players. Osstem, backed by investment firms MBK Partners and Unison Capital Korea, has emerged as a potential buyer.

3. People: Moderna, BeiGene, Akeso and Caidya

Moderna: After 14 years on Moderna’s board, Robert Langer, a chemical engineer known for his contributions to developing the mRNA Covid-19 vaccine, is retiring. Langer will remain an advisor. Stephen Berenson of Flagship Pioneering is also stepping down alongside Langer, and David Rubenstein from The Carlyle Group will join the board on August 5. Langer, an MIT Institute Professor and a researcher with over 1,600 publications and 1,495 patents, has been a significant figure in biotechnology, contributing to the founding of numerous companies. He has received prestigious awards, including the Queen Elizabeth Prize for Engineering. His son, Michael Langer, expressed pride in his father’s achievements and looks forward to working with him in future biotech ventures.

BeiGene: Global oncology company BeiGene appointed Aaron Rosenberg as its new CRO, effective July 22. Rosenberg replaces Julia Wang, who is leaving the company but will remain through August to assist with the transition. Rosenberg has over 20 years of experience at Merck & Co, and has served as the Senior Vice President and Corporate Treasurer. He will contribute to BeiGene’s financial leadership during a pivotal year marked by significant revenue growth and innovation in cancer treatment.

Akeso: Akeso Biopharma appointed Bing C. Wang as the company’s CFO. Prior to joining Akeso, Wang served as the CFO at Cellectis, a French biopharmaceutical company dedicated to developing genome-edited CAR-T cell technologies for cancer immunotherapy. Before that, he co-founded and led Refuge Biotechnologies, Inc., a firm focused on CRISPR-based T-cell therapies. His background also includes a role as director of US healthcare investment banking at Barclays Capital.

Caidya: Global clinical trial solutions provider Caidya appointed Barbara Lopez Kunz, a member of Caidya’s Board of Directors, as its CEO, effective September 1. Kunz will succeed Dr Lingshi Tan, who will transition to Executive Chairman of the Board. Kunz will focus on enhancing Caidya’s role in patient-centred clinical research and innovation. Kunz’s career includes roles at Thermo Fisher Scientific, DuPont, ICI (now AstraZeneca), Battelle, and DIA.

Read the full article about Langer’s retirement from Moderna’s board.

Read the full article about Rosenberg’s appointment at BeiGene.

Read the full article about Bing C. Wang’s professional background.

Read the full article about Caidya’s new CEO.

Gain an Edge with Timely Insights

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• Professor Langer