Jiangsu Hengrui Pharmaceutical Group Co. Ltd.

The Imdelltra transaction with BeOne Medicines is consistent with Royalty Pharma’s business model of acquiring royalties on commercially promising drugs. BeOne Medicines is monetizing its stake in Amgen’s first-in-class lung cancer drug Imdelltra for up to $950 million.Royalty Pharma will pay BeOne $885 million upfront for certain royalty payments from Amgen tied to ex-China sales of its DLL3 T-cell engager Imdelltra.Within the next 12 months, BeOne has an option to sell additional royalty rights to Royalty for up to $65 million.The royalties represent “a significant portion” of “tiered mid-single digit” payments based on Imdelltra’s annual sales above $1.5 billion, BeOne said in an Aug. 25 securities filing. Royalty, in a separate release, said the royalty level is about 7%.BeOne, formerly known as BeiGene, gained the Imdelltra rights through a broad-ranging strategic collaboration with Amgen in 2019. That deal includes commercialization of Amgen’s oncology products in China, and a global clinical development alliance.Imdelltra became the first FDA-approved DLL3 agent in May of 2024 with an accelerated approval in previously treated extensive-stage small cell lung cancer (SCLC) following platinum-based chemotherapy.A full approval looks within reach after the phase 3 DeLLphi-304 trial recently linked the bispecific antibody to a 40% reduction in the risk of death in SCLC patients who have tried one line of platinum-based chemo. Separately, with the phase 3 DeLLphi-305 and DeLLphi-306 studies, Amgen aims to move Imdelltra into first-line treatment. In China, BeOne is running the DeLLphi-307 trial in the hopes of getting Imdelltra approved in the country in third-line SCLC.As the first DLL3-targeting agent to reach the market, Imdelltra has shown great market potential. Its sales reached $215 million in the first half of 2025, and its revenue in the second quarter, at $134 million, came 41% above analysts’ expectations.As SCLC affects about 360,000 patients worldwide each year, analysts’ consensus currently pegs the drug could reach $2.8 billion in sales by 2035, according to Royalty.However, Imdelltra’s profile, including its side effects, still leaves room for improvement. And the promise of the DLL3 target, as validated by Imdelltra, has attracted several large companies.At the beginning of 2025, Roche and Innovent Biologics unveiled a potential $1 billion deal that grants the Swiss pharma the Chinese biotech’s DLL3-targeted antibody-drug conjugate IBI3009. Last year, Merck & Co. bought Harpoon Therapeutics, with a lead candidate being a rival DLL3 T-cell engager.Companies like Boehringer Ingelheim and a partnership between Ideaya Biosciences and Jiangsu Hengrui Pharmaceuticals are among players eyeing the DLL3 field.For BeOne, the royalty deal gives the newly Switzerland-domiciled company immediate cash to advance its internal pipeline while reducing risks from potential Imdelltra competition. “By monetizing a significant portion of our royalty interest in Imdelltra, we are able to strengthen our balance sheet and unlock substantial value,” BeOne CEO John V. Oyler said in a statement, adding that the deal “provides us with increased operational and strategic flexibility.” For Royalty, the transaction is consistent with the New York company’s business model of acquiring royalties on commercially promising drugs. Some of the drugs Royalty has tapped include Syndax Pharmaceuticals’ graft-versus-host disease drug Niktimvo, Revolution Medicines’ phase 3 RAS candidate daraxonrasib and Biogen’s phase 3 lupus asset litifilimab.“Imdelltra is expected to further enhance Royalty Pharma’s long-term growth and portfolio diversification, and we remain incredibly excited given our robust transaction pipeline,” the company’s CEO, Pablo Legorreta, said in a statement.“We view this deal as positive given it highlights Royalty’s preference for commercial/late-stage high-impact compounds with large [total addressable market size] alongside the company’s commitment to business development,” Citi analysts said in a Monday note.

Padcev and Keytruda's perioperative win, Chinese regulators' decision on Green Valley's Alzheimer's drug, and Fosun's DPP1 licensing deal made our news this week. The combination of Padcev and Keytruda delivered a phase 3 win in muscle-invasive bladder cancer. China did not renew the conditional approval for a controversial Alzheimer's disease drug. Fosun Pharma is out-licensing its DPP1 inhibitor for up to $645 million. And more.1. Pfizer and Astellas' Padcev, plus Keytruda, delivers 'breakthrough' win in new bladder cancer useAfter making waves in first-line metastatic bladder cancer, the combination of Pfizer and Astellas’ Padcev and Merck & Co.’s Keytruda has shown it can extend lives when used as a perioperative treatment around surgery for patients with cisplatin-ineligible muscle-invasive bladder cancer, according to a readout from the phase 3 EV-303 study, which is also known as Keynote-905.2. China did not renew approval of controversial Alzheimer's drug, regulator's records showChina’s drug regulator did not renew the conditional nod for Green Valley Pharmaceuticals’ controversial Alzheimer’s disease med sodium oligomannate (GV-971), according to public records. The move followed a protracted review that stretched past the expiration date of the drug’s existing licensure, triggering a production and marketing halt in May.3. Expedition inks $645M pact to pocket Fosun's lung disease asset in knapsackInflammatory disease startup Expedition Therapeutics is paying $17 million upfront, plus up to $628 million in potential milestones, for ex-China rights to Fosun Pharma’s DPP1 inhibitor XH-S004. The deal was inked right before the FDA approved Insmed’s brensocatib as the first DPP1 inhibitor. The approved indication for Insmed's therapy is non-cystic fibrosis bronchiectasis.4. Aurobindo acquires US drugmaker Lannett for $250M to bolster 'reshoring' effortAurobindo is paying $250 million to buy Lannett, which is known for manufacturing attention-deficit/hyperactivity disorder medicines and generic liquids. “The acquisition strengthens Aurobindo’s ability to serve the U.S. generics space and provides strategic diversification into a specialized, high-value therapeutic category,” the Indian company said in an announcement.5. HLB taps new Elevar CEO amid liver cancer setbacks, new FDA push (Korea Biomedical Review)Korea’s HLB has tapped Byan Kim as CEO of Elevar Therapeutics. Kim will continue as co-CEO of HLB Innovation and CEO of another HLB subsidiary, Verismo Therapeutics. The move comes after Elevar and Jiangsu Hengrui Pharmaceuticals’ PD-1/VEGFR combination suffered repeated FDA setbacks in liver cancer and as Elevar prepares to file an approval for lirafugratinib in FGFR2-altered cholangiocarcinoma.Other News of Note:6. RemeGen's telitacicept meets the mark in ph. 3 Sjögren's study in China7. Indian API maker Garonit Pharma plans $46.1M antiseptic product plant in New York8. Shilpa wins India approval for world's first NAFLD med, company says (Regulatory tracker)

GSK has announced that it will be strengthening its respiratory, immunology and inflammation (RI&I) and oncology pipeline through a $12bn deal with Hengrui Pharma. The agreement covers up to 12 medicines, including an exclusive global licence (excluding mainland China, Hong Kong, Macau and Taiwan) for a PDE3/4 inhibitor in clinical development for chronic obstructive pulmonary disease (COPD). Approximately 1.4 million people in the UK have been diagnosed with COPD, a chronic respiratory disease that causes progressive lung function decline and results in symptoms such as persistent cough, excessive mucus production and a shortness of breath. Hengrui’s candidate, HRS-9821, is being evaluated as an add-on maintenance treatment for COPD, regardless of background therapy, and has already been associated with increased bronchodilation and anti-inflammatory effects in early clinical and preclinical studies. Alongside HRS-9821, the companies will aim to generate up to 11 programmes, with Hengrui leading development up to the completion of phase 1 trials. GSK will then have the exclusive option to further develop and commercialise each programme worldwide (excluding mainland China, Hong Kong, Macau and Taiwan), as well as certain programme substitution rights. In exchange, Hengrui will receive $500m in upfront fees and will be eligible for approximately $12bn in development, regulatory and commercial milestone payments, as well as tiered royalties on global product net sales. GSK’s chief scientific officer, Tony Wood, said: “We’re delighted to announce these exciting agreements with Hengrui Pharma which complement our already-extensive pipeline. “This deal reflects our strategic investment in programmes that address validated targets, increasing the likelihood of success, and with the option to advance those assets with the greatest potential for patient impact.” Also commenting on the collaboration agreement, Frank Jiang, executive vice president and chief strategy officer of Hengrui Pharma, said: “GSK brings additional research and development expertise, a robust global clinical network, and broad regulatory capabilities that will accelerate our PDE3/4 inhibitor as well as an array of other innovative therapy programmes to overseas markets, potentially delivering breakthrough treatments to patients globally.”