Week In Review: BioAtla And Pfizer In $1 Billion Oncology Drug Deal

Deals and Financings

BioAtla LLC, a San Diego-Beijing biotech, entered a complicated deal with Pfizer (NYSE: PFE) that could be worth more than $1 billion to BioAtla (see story). The agreement combines BioAtla’s Conditionally Active Biologic (CAB) antibodies with Pfizer’s proprietary antibody drug conjugate (ADC) payloads. In addition, Pfizer has an exclusive option to develop and market BioAtla CAB antibodies that target CTLA4, an immuno-oncology target. Each company will pay the other milestones and royalties if it develops and markets a CAB-ADC antibody candidate from the partnership. BioAtla’s $1 billion payout, which includes Pfizer’s rights to the CTLA4 antibodies, is a combination of up-front, regulatory and sales milestone payments plus tiered royalties on potential revenues. 

Jiangsu Hansoh Pharmaceutical plans to stage a $1.5 billion IPO in Hong Kong during the first half of 2016 (see story). However, the transaction remains in its early planning stages: the company will review pitches from investment bankers next week. The news was reported by IFR, a Thomson Reuters publication. Hansoh, founded in 1995, sells its APIs globally and also makes finished drugs.  

Pharmaron, a Beijing-US CRO, announced a very large fundraising of more than $280 million led by China investors CITIC M&A Fund and Legend Capital (see story). The company said it would use the money to invest in cutting edge technologies for growth, and it will also repay some of its early investors. Pharmaron did not disclose any specific details. Pharmaron operates a Beijing lab and also has facilities in Louisville, KY and Los Angeles. 

Akeso Biopharma of Zhongshan out-licensed global rights for an immuno-oncology antibody to Merck (NYSE: MRK) (known as MSD outside of the United States and Canada) (see story). Merck paid an unspecified upfront payment and agreed to a package of up to $200 million in development and commercialization milestones. AK-107 is an immune checkpoint blocking antibody discovered by Akeso. Further details were not disclosed.