Sino Biopharmaceutical has announced plans to acquire LaNova Medicines, a Shanghai-based cancer drugmaker, in a deal valued at up to $951 million. The acquisition will see Sino BioPharm purchase the approximately 95% of LaNova it doesn't already own, making LaNova a wholly owned subsidiary upon completion. Accounting for LaNova's cash holdings, the net payment will total approximately $500 million.
Strategic Focus on PD-1xVEGF Bispecific Therapies
The acquisition highlights the growing momentum around PD-1xVEGF bispecific therapies, a drug class that has gained significant attention following recent clinical successes. LaNova specializes in developing treatments that combine PD-1 inhibitors with VEGF-targeting mechanisms, an approach designed to enhance cancer immunotherapy outcomes.
The company's most notable asset in this space is LM-299, a bispecific antibody targeting PD-1 and VEGF. In November 2024, Merck & Co. acquired rights to LM-299, paying LaNova $588 million in upfront cash. This substantial investment reflects the pharmaceutical industry's renewed interest in PD-1xVEGF bispecific antibodies, particularly after ivonescimab, a similarly structured drug, outperformed Merck's dominant immunotherapy in a head-to-head lung cancer study.
Established Global Partnerships
LaNova's value proposition extends beyond its PD-1xVEGF platform through strategic partnerships with major pharmaceutical companies. In 2023, AstraZeneca licensed an antibody-drug conjugate (ADC) designed to bind GPRC5D, a protein target gaining prominence in multiple myeloma treatment development. The deal provided LaNova with $55 million upfront, demonstrating the company's ability to attract multinational pharmaceutical interest.
Robust Clinical Pipeline
Founded in Shanghai less than six years ago, LaNova has built a comprehensive pipeline comprising eight clinical-stage compounds. Beyond the licensed assets, the company is advancing several proprietary programs, including an antibody targeting the CCR8 protein for gastric cancer and other solid tumors, currently in Phase 2 trials.
The company's most advanced proprietary asset is an ADC targeting Claudin 18.2, which has progressed to Phase 3 trials in China. This represents a significant milestone for LaNova's independent development capabilities and positions the company in the competitive gastric cancer treatment landscape.
China's Biotech Evolution
LaNova's emergence and subsequent acquisition reflect the broader transformation of China's biotech sector. Over the past decade, the industry has evolved from a manufacturing-focused model to an innovative hub capable of designing drugs that attract multinational pharmaceutical companies from the United States and Europe.
Sino Biopharm's previous investment in LaNova's Series C1 financing, announced in October 2024, demonstrated the acquirer's existing confidence in the company's prospects. The full acquisition represents a strategic consolidation that positions Sino Biopharm to capitalize on the growing interest in PD-1xVEGF therapies within the Chinese market and beyond.
