With an eye toward advancing a novel antibody-drug conjugate for gastrointestinal cancers, ArriVent is the latest biopharma player to ink a deal with a Chinese biotech.
ArriVent BioPharma on Tuesday entered into an exclusive licensing agreement with Shanghai-based biotech Lepu Biopharma to advance a novel antibody-drug conjugate for gastrointestinal cancers, joining a growing group of biopharma players that are turning to China for new and innovative pipeline assets.
As per the terms of the agreement, ArriVent will make an upfront payment of $47 million in cash and has pledged up to $1.16 billion in development, regulatory and sales milestones. Lepu will also be eligible for tiered royalties on net sales outside the Greater China region, should the investigational therapy reach the market.
In return, ArriVent will gain the exclusive right to develop and market Lepu’s MRG007, an experimental antibody-drug conjugate (ADC) whose target remains undisclosed. ArriVent plans to test MRG007 in multiple gastrointestinal (GI) cancers, with an initial focus on colorectal cancer and pancreatic cancer, according to ArriVent’s press announcement on Tuesday.
ArriVent CEO Bing Yao said in a statement that based on several early studies, MRG007 is a “potential best-in-class ADC” for several GI cancers. In preclinical, Investigational New Drug (IND)–enabling studies, for instance, MRG007 has shown “robust antitumor activity” and “a favorable therapeutic index,” according to the announcement.
The Lepu partnership will help ArriVent expand its pipeline of cancer therapies “and accelerates our ADC portfolio by adding a program which plans to enter the clinic in the near-term,” Yao said. As per the Tuesday release, MRG007 is set for its first IND submission in the first half of 2025.
ArriVent announced plans to go public almost a year ago to the day, initially aiming for a $175 million raise. In its business report in March 2024, the biotech revealed that it surpassed this target and counted $201 million in IPO earnings. ArriVent is using this money to support its cancer-focused pipeline, specifically to fund the New Drug Application of its lead asset furmonertinib, an oral and brain-penetrant EGFR inhibitor, for non-small cell lung cancer.
With Tuesday’s licensing deal, ArriVent follows in the footsteps of other biopharma players that are turning to Chinese counterparts for novel therapies. According to Jefferies analysts, 10 U.S.-based companies licensed drugs from China in both 2023 and 2024—a substantial increase from the four such partnerships in 2022. Last year, the industry pumped nearly $400 million in Chinese licensing deals.
This trend shows no signs of slowing down—even as new President Donald Trump threatens a trade war with China. Pharma powerhouse Roche welcomed the new year with a potential $1 billion contract with China-based Innovent, looking to develop an anti-DLL3 ADC for small cell lung cancer. A few days later, GSK-backed Ouro Medicines launched with $120 million capital and a bispecific T cell engager licensed from Chinese biotech Keymed Biosciences. Ouro plans to test the asset in immune-mediated indications.
