Chinese biopharmaceutical company Innovent Biologics (HKEX: 01801) announced on Thursday that it has entered into a global strategic collaboration with Japan-based Takeda (TSE: 4502, NYSE: TAK).

This collaboration is aimed at accelerating the global development and commercialisation of Innovent's next-generation immuno-oncology (IO) and antibody-drug conjugate (ADC) therapies, including the global partnership on IBI363 (PD-1/IL-2 alpha-bias) and IBI343 (CLDN18.2 ADC), and an option for an early-stage program IBI3001 (EGFR/B7H3 ADC).

Under the agreement, both parties will co-develop IBI363 globally, and co-commercialise IBI363 in the United States, with Takeda leading the co-development and co-commercialisation efforts under joint governance and aligned development plan. Innovent has also granted Takeda exclusive commercialisation rights for IBI363 outside Greater China and the United States. Takeda has global manufacturing rights to supply IBI363 outside Greater China, with these rights being co-exclusive with Innovent for commercial supply in the United States. Innovent has also granted Takeda exclusive global rights to develop, manufacture and commercialise IBI343 outside of Greater China. Additionally, Takeda will receive an exclusive option to license global rights for IBI3001, a first-in-class EGFR/B7H3 bispecific ADC in Phase 1 stage, outside Greater China.

Takeda will pay Innovent an upfront payment of USD1.2bn, including a USD100m equity investment in Innovent through new share issuance at premium, i.e., HKD112.56 per share. Furthermore, Innovent is eligible for development and sales milestone payments for IBI363, IBI343, and IBI3001 (if option exercised) totalling up to approximately USD10.2bn, for a total deal value of up to USD11.4bn. Innovent is also eligible to receive potential royalty payments for each molecule outside Greater China, except with respect to IBI363 in the US, where the parties will share profits or losses (40/60 Innovent/Takeda).