AstraZeneca and Merck deals boost Chinese biotech innovation appeal

Deals involving novel cancer therapies and weight-loss drugs reinforce the growing global appeal of Chinese biotech innovation

Shares of Akeso surged after British drug maker AstraZeneca moved to advance the Chinese biotech firm’s flagship cancer drug, while a new deal from US giant Merck further underscored the sector’s global momentum amid easing fears of US curbs.

AstraZeneca on Tuesday announced a US$2 billion equity investment in Florida-headquartered Summit Therapeutics, which holds the exclusive rights to develop and commercialise Akeso’s immunotherapy drug ivonescimab outside China.

Summit and AstraZeneca would “imminently” begin clinical trials to evaluate ivonescimab in combination with AstraZeneca’s antibody-drug conjugates, including gastrointestinal cancer drug sonesitatug vedotin, the companies said.

Cui Cui, head of Asia healthcare research at Jefferies, said in a note on Tuesday that the partnership “further strengthened” the investment bank’s conviction that ivonescimab could become a foundational immunotherapy treatment when used alongside other medicines.