Chinese cancer-drug maker BeiGene in US$1.4 billion tie-up with biotech giant Celgene
The deal will bankroll trials of BeiGene’s oncology medicines in China, while Celgene gets rights to market its anti-tumour therapy outside Asia
BeiGene, a Chinese maker of cancer medicines, has closed a US$1.39 billion deal with the American biotechnology giant Celgene, marking the biggest overseas licensing to date of drugs developed in China.
The deal will bankroll BeiGene’s clinical trials for treating the four most common tumours in China – lung, stomach, liver and eosophageal cancers – said Wang Xiaodong, co-founder and chairman of the company’s scientific advisory board.
Under the agreement, BeiGene will receive an aggregate of US$413 million from Celgene in upfront licensing fees and equity investment, with an additional US$980 million in future regulatory and sales proceeds.
Chinese pharmaceutical companies’ gap with international giants is becoming narrower
In exchange, the global biopharmaceutical firm will receive exclusive rights to commercialise BeiGene’s immuno-oncology therapy, BGB-A317, in the United States, Europe, Japan and the rest of the world outside Asia.
BeiGene will assume Celgene’s operations in China including its approved products for treating breast cancer, multiple myeloma and myelodysplastic syndrome – both forms of blood cancer.
“The partnership would combine our geographical strength to ensure a broader reach to patients. For Beigene, we have been bent on developing world-class oncology treatment both in China and to Chinese patients,” said Wang on Thursday at a launch event in Beijing.
The deal marks the second endorsement the Beijing-headquartered start-up has received from a global partner since Merck Serono, the biopharmaceutical division of Merck, signed a licensing and co-development deal with the company in 2013.