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Shares of the high-tech industry group in Changchun rose after a subsidiary of the Chinese biopharmaceutical firm granted worldwide rights to an innovative hyperthyroidism treatment to a US-based clinical-stage biotech company for up to $1.4 billion.
The company’s stock was trading up 3.8%, at CNY95.57 (approximately $13.56), as of 2:10 PM in Shenzhen today.
The biotech firm has secured exclusive rights outside of China to develop, manufacture, and market the drug, GS-098, as part of a licensing agreement involving the parent company, its subsidiary, Yarrow Bioscience, and RTW Investments, a prominent healthcare investor backing Yarrow.
GS-098 is an experimental, first-in-class, humanized monoclonal antibody that targets the receptor for thyroid-stimulating hormone, aimed at treating Graves’ disease and thyroid eye disease. Last August, it gained regulatory approval to proceed with clinical trials for thyroid-associated orbitopathy in China and the US. It received approval for clinical testing in Graves’ disease in China in October.
The biotech company will receive an upfront payment of $70 million, a near-term milestone payment of $50 million, and additional payments tied to development, regulatory achievements, and commercialization, bringing the total potential deal value to $1.4 billion. Once the drug hits the market, the company will also earn tiered double-digit royalties on sales.
“This partnership with RTW and Yarrow marks a strategic milestone in our goal of becoming a global pharmaceutical innovator,” said the founder, general manager, and chief scientist of the biotech firm. “GS-098, developed at our research center in Shanghai, is a first-in-class molecule with outstanding potential.”
“This collaboration offers a significant opportunity for Yarrow and our biotech partner to push GS-098 (YB-101) toward important clinical milestones for both Graves’ disease and thyroid eye disease,” stated the CEO of Yarrow. “Patients suffering from these autoimmune conditions face significant unmet needs.”
“Our alliance with this biotech company reflects RTW’s commitment to advancing impactful science through long-term, collaborative company-building,” said the partner and president of RTW. “We aim to develop world-class biotech firms, and Yarrow exemplifies this mission perfectly.”
Based in New York, Yarrow is a clinical-stage biotech focused on creating transformative therapies for autoimmune thyroid disorders. Its lead candidate, YB-101, is a humanized monoclonal antibody targeting the TSH receptor to treat Graves’ disease and thyroid eye disease. The company was founded and incubated by RTW.
RTW, also headquartered in New York, is a global investment firm dedicated to identifying disruptive innovations in biopharmaceuticals and medical technology sectors throughout their full lifecycle.
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