DYNAMICS OF CHINESE BIOTECH INVESTMENTS: RESHAPING … · 2020-01-14 · Cancer Vaccines Re-Imagined: From Pariah to Darling. Monday Dec. 10, 2018 – to register scan QR code ASH

DYNAMICS OF CHINESE BIOTECH INVESTMENTS: RESHAPING THE GLOBAL COMPETITIVE LANDSCAPEJames T. Lee, PhDAssociate Principal, Oncology LeadNovember 28, 2018

2China Biotech Webinar – 28Nov2018© Cello Health BioConsulting 2018

Cello Health BioConsulting, previously Defined Health, is a part of Cello HealthA worldwide team of more than 400 based in the US and UK

A UNIQUE FUSION OF EXPERTISE TO SOLVE PROBLEMS, REDUCE RISK AND UNLOCK THE FULL POTENTIAL OF ORGANIZATIONS, ASSETS AND BRANDS

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PhDs and MDs providing a depth of understanding into cutting edge science

30TH Annual Cancer Progress ConferenceMay 7 – 8, 2019

Convene at 32 Old Slip, NYCwww.cancerprogressbyDH.com

CHBC/Defined Health Insight Series WebinarCancer Vaccines Re-Imagined: From Pariah to DarlingMonday Dec. 10, 2018 – to register scan QR code

ASHSan Diego 11/30-12/4 2018

3rd International Prostate Cancer and Urologic Oncology World CongressNew York 12/13-12/15 2018

Solebury Trout 1x1 Access/Biotech Showcase (JPM)San Francisco 1/7-1/10 2019

IO360New York 2/6-2/8 2019

Please join us for Cancer Progress 2019, and we hope to see you at these upcoming events!

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https://attendee.gotowebinar.com/register/1647911039076023052?source=DH-SM



Panelists:Brad LoncarChief Executive OfficerLoncar Investments LLC

Guillaume Vignon, PhDSenior Vice President, Business DevelopmentBeiGene

Jonathan Wang, MBASenior Vice President, Head of Business DevelopmentZai Lab

Distinguished Panelists

Moderator:James T. Lee, PhDAssociate Principal, Oncology LeadCello Health [email protected]


The information in this report has been obtained from what are believed to be reliable sources and has been verified whenever possible. Nevertheless, we cannot guarantee the information contained herein as to accuracy or completeness. All expressions of opinion are the responsibility of Defined Health, and though current as of the date of this report, are subject to change.

The opinions and information set forth herein are expressed solely for the benefit of the addressee and only for the purpose(s) for which the report was produced. Without the prior written consent of Defined Health, this report may not be relied on in whole or in part for any other purpose or by any other person or entity, provided that this report may be disclosed where disclosure is required by law.

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© Cello Health BioConsulting, 2018


China Therapeutics Deal-Making is Capturing Everyone’s Intrigue

Just some major cross-border deals in 2018!

Company website; BioCenury; SeekingAlpha


4 98

7

2

0.64 Bn0.15 Bn

1.21 Bn 1.49 Bn

0.78 Bn1.01 Bn

1.26 Bn

2.38 Bn

5.12 Bn

2.81 Bn

3.74 Bn

0 Bn

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0

10

20

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80

2014 2015 2016 2017 2018

Tota

l Dea

l Val

ue ($

Bn)

Tota

l No.

of D

eals

Total No. of Deals Distributed by Deal Category (n=220)

Expected No. of Deals

M&A

JV

Collaborators

Licensor

Licensee

Total Upfront

Total Deal Value (TDV)

Expected TDV

Q4

Q1-

3

2018 has been a Banner Year Driven by Greater Emphasis on Licensing Deals

BCIQ; *Note: Licensee and Licensor refer to China’s role in the deal; Total Upfront = includes upfront cash and equity.

25% growth in Total Deal Value expected by end of Q4, 2018

• 2014: Altor Biosciences Licenses China Rights for ALT-803 to Shenzhen Beike Biotechnology for US$4M upfront, US$200M deal value

• 2017: Sanpower Acquisition of Dendreon from Valeant help drive the total upfront and deal value significantly US$819.9M

• 2017: BeiGene grants Celgene BGB-A317 ex-China rights for US$413M upfront for total value ~US$1.4Bn


Oncology is Approaching 50% of Deals Driven by Interest in Innovative Therapeutics

BCIQ; *Note = Non-onco count also includes those deals where a therapeutic area wasn’t included/specified; Total Upfront = includes upfront cash and equity.

0.64 Bn0.15 Bn

1.21 Bn1.49 Bn

0.78 Bn

1.01 Bn 1.26 Bn

2.38 Bn

5.12 Bn

2.81 Bn

3.74 Bn

0 Bn

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0

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2014 2015 2016 2017 2018

Tota

l Dea

l Val

ue ($

Bn)

Tota

l No.

of D

eals

Total No. of Deals Distributed by Onco vs. Non-onco Deals (n=220)


Non-onco

Onco

Total Upfront Value

Total Deal Value (TDV)

Expected TDV


Q4

Q1-

3

Year Top Oncology China Deal Upfront (USD)

Total (USD)

2014 Altor and Shenzhen Beike $4M $200M

2015 Eli Lilly and Innovent $56M $456M

2016 Aveo and CANbridge $1M $134M

2017 Valeant/Dendreon and Sanpower $820M $820M

2018 Agios and C-Stone $40M $386M


Push for Near Term Innovative Therapeutics has Driven Dealmaking into Early Clinical Stages and Away from Marketed and Preclinical Deals

BCIQ; *Note: Approved deals were changed to status of pharmaceutical product within deal; Total Upfront = includes upfront cash and equity.

0.64 Bn

0.15 Bn

1.21 Bn1.49 Bn

0.78 Bn1.01 Bn

1.31 Bn

2.38 Bn

5.12 Bn

2.97 Bn

3.96 Bn

0 Bn

1 Bn

2 Bn

3 Bn

4 Bn

5 Bn

6 Bn

0

10

20

30

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80

2014 2015 2016 2017 2018

Tota

l Dea

l Val

ue ($

Bn)

Tota

l No.

of D

eals

Total No. of Deals Distributed by Phase at Signing (n=220)


Undisclosed/NA

Marketed

Registered

Phase 3

Phase 2

Phase 1/2

Phase 1

Preclinical

Total Upfront Value

Total Deal Value

Expected TDV


Q1-

3Q

4

Phase 1 asset transactions in 2018 to China

VentoRx and Everest Medicines

Acticor and China Medical Systems

vTv Therapeutics and Newsoara Biopharma

Roche and Ark Biosciences

Lilly and Jiangsu Tasly Diyi

MEI Pharma and BeiGene


In-Licensing Deals Address China Market Needs While Out-Licensing Deals are Mostly Addressing Global Markets

BCIQ

100

19

98

In-Licensing to ChinaTotal No. of Licensee Deals by Territory

(n=136)

China

Global

Undisclosed

Asia/Oceania

15

8

6

1

Out-Licensing from ChinaTotal No. of Licensor Deals by

Territory (n=30)

Undisclosed

Global

China

Asia/Oceania


Therapeutics Licensee Deals are Expanding Beyond Asia into Global Markets

BCIQ

2317 14

2026

3

33

3

7

1

3

4

12

0

10

20

30

40

50

60

2014 2015 2016 2017 2018

Tota

l No.

of D

eals

Total No. of Licensee Deals Distributed by Territory (n=127)


Asia/Oceania

Global

China

Q4

Q1-

3

25% growth in Total Deal Value expected by end of Q4, 2018Global Licensing by Chinese Biotech/Pharma

AstraZeneca to Luye Pharma

Crescendo Biologics to Zai Lab

Roche to Ark Biosciences

Novartis to Everest Medicine

Novartis to Adlai Nortye

Pfizer to Suzhou Kintor

Novartis to Laekna Therapeutics


The Future is Yet to Unfold, but Many Questions Remain on How China Biotech/Pharma will Proceed in the Global Stage

We expect the growth of the sector to continue with the influx of capital into the industry and the expansion of capital from the public market (eg. HKEX).

Innovation will continued to be pushed by the government, which may generate even more interest in licensing rights to China.

In what ways do you see the recent priority review path, which helps lower barriers to entry for global players/assets to enter the Chinese market, impacting domestic Chinese players? How are Chinese biotech/pharma likely to respond to these global pressures?

The global market is highly competitive; if China biotech/pharma are to become global players, what will make them formidable competitors in the global market and what are challenges that they will face?

What strategies will drive clinical development and business development opportunities?20

14

2018

2022

40

70

???

Tota

l Dea

ls

China Biotech/Pharma Deal-Making Trajectory


Panelists:Brad LoncarChief Executive OfficerLoncar Investments LLC

Guillaume Vignon, PhDSenior Vice President, Business DevelopmentBeiGene

Jonathan Wang, MBASenior Vice President, Head of Business DevelopmentZai Lab

Distinguished Panelists

Moderator:James T. Lee, PhDAssociate Principal, Oncology LeadCello Health [email protected]

30TH Annual Cancer Progress ConferenceMay 7 – 8, 2019

Convene at 32 Old Slip, NYCwww.cancerprogressbyDH.com

CHBC/Defined Health Insight Series WebinarCancer Vaccines Re-Imagined: From Pariah to DarlingMonday Dec. 10, 2018 – to register scan QR code

ASHSan Diego 11/30-12/4 2018

3rd International Prostate Cancer and Urologic Oncology World CongressNew York 12/13-12/15 2018

Solebury Trout 1x1 Access/Biotech Showcase (JPM)San Francisco 1/7-1/10 2019

IO360New York 2/6-2/8 2019

Please join us for Cancer Progress 2019, and we hope to see you at these upcoming events!

https://www.cancerprogressbydh.com/



Documents

DYNAMICS OF CHINESE BIOTECH INVESTMENTS: RESHAPING … · 2020-01-14 · Cancer Vaccines Re-Imagined: From Pariah to Darling. Monday Dec. 10, 2018 – to register scan QR code ASH