2025-07-11
SenovaTech Team at CPHI 2025 i
Sino Biopharmaceutical Acquires LaNova Medicines for $950 Million, Accelerating Local Pharma's Integration of Innovation Resources
Release Time: 2025-07-18
News Source: SenovaTech
Author: SENOVA—Lucas
Chinese pharmaceutical giant Sino Biopharmaceutical (Stock Code: 01177.HK) announced on the evening of July 15th the full acquisition of innovative biotech firm LaNova Medicines for a total consideration of approximately $950 million. After deducting LaNova's existing cash and deposits, the net payment amounts to about $500 million. Upon completion, Sino Biopharmaceutical will fully own LaNova Medicines.
This acquisition, occurring amidst sustained high activity in China's innovative drug deal landscape in 2025, is seen as a significant indicator. It signals an acceleration in a new model where domestic large pharmaceutical companies (Big Pharma) are directly integrating resources from local emerging biotech firms (Biotech). This contrasts with the previously dominant path of out-licensing domestic assets to multinational corporations.
LaNova's appeal lies in its focus on globally trending R&D areas, specifically antibody-drug conjugates (ADCs) and bispecific antibodies, backed by validation from international giants. The company secured major licensing deals with AstraZeneca and Merck & Co. (known as MSD outside the US & Canada) for its ADC and bispecific antibody programs. Notably, Merck paid a substantial $588 million upfront for the global rights to LaNova's PD-1/VEGF bispecific antibody (LM-299), providing external validation for its technology platforms and pipeline potential.
However, market observers note that LaNova's core pipeline assets are primarily in early-stage development (Phase I clinical trials or preclinical). This implies a long, high-risk development path ahead. Sino Biopharmaceutical's acquisition effectively places a bet on these early-stage prospects, with the ultimate return being highly uncertain. Additionally, as a typical R&D-focused Biotech, LaNova generates minimal revenue (only RMB 216,000 in 2024) and operates at a loss. Integrating its high-investment, high-risk R&D system poses operational management challenges for Sino Biopharmaceutical.
Concurrent with the acquisition announcement, market rumors surfaced suggesting LaNova's key product, LM-299, had been "returned" by Merck. Sino Biopharmaceutical swiftly clarified to media, stating the collaboration with Merck is proceeding normally per the agreement and is currently in the technology transfer phase. The company emphasized that LaNova is set to receive a $300 million milestone payment upon completion of this transfer, which Merck expects to finalize within 2025.
This move is undoubtedly a crucial step in Sino Biopharmaceutical's accelerated shift towards innovation-driven growth, aiming to rapidly bolster its portfolio with cutting-edge technology platforms and early-stage pipelines. For the industry, it highlights a growing trend where domestic Big Pharma leverages financial strength to deeply integrate cutting-edge domestic innovation resources, potentially reshaping China's innovative drug R&D ecosystem. The success of this specific acquisition, however, ultimately hinges on the progress of LaNova's early-stage pipeline and subsequent commercialization outcomes. Its progress will be closely watched.
