3SBio Sees More Business Development Deals

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00:00What are your expectations this year at the conference in terms of deal-making?

00:05Well, thanks, Yvonne. That's a very good question. So we are still looking forward to more and more

00:13business development transactions this year and potentially the next two to three years.

00:18So right now we have pretty good and decent data from a few other bispecific and trispecific

00:26antibodies. For example, we have a PD-1 HER2, which functions as immune oncology and also a

00:35targeted therapy at the same time. And we have a PD-1, PD-L1. Both are doing phase two clinical

00:42trials in China. And we've got U.S. FDA approval for clinical trials in the U.S. as well.

00:47And we have a B7H3, interleukin-15. It's immunocytocaine, which is going through a phase

00:58one clinical trial in China. That's also, we believe, a first-in-class potential candidate.

01:07And we also have a MUC-17, CD3, CD28. That's a quite specific TCE antibody, which is going

01:16through a phase one clinical trial in China. So in a nutshell, lots of good stuff happening

01:22within our organization and more to come because we have more molecule entities to be announced,

01:30not now, but tomorrow when we make a corporate presentation. So very promising this year and

01:38potentially two or three years down the road.

01:40Tony, David here. Very nice to see you.

01:45Hi, David.

01:45To your point, things are going well. It's a good thing. Things seem to be moving quick.

01:53Are any of the things that you mentioned, does that accelerate the timeline for

01:57some of the things you wish to achieve in terms of monetization and the like?

02:02Yeah, of course. Of course. With more and more clinical data, and we do expect that some of

02:09them, if data mature, to be published in global recognized society, for example, ASCO, ASMO,

02:17including Cisco, right? So that would definitely help when you want to, you know, have more in-depth

02:23conversation with the global multinationals, with the regional biotechs. So data. So back to our

02:29experience with the Pfizer, right? So people may ask, what, what caused you, what led to the

02:36successful transaction? And it appears to be one of the largest ever upfront payment received by a

02:44China biopharma from a global multinational. And my answer to that question is always data. You

02:49need to have a sound and a proven clinical data generated that you have to demonstrate the safety

02:56data, you have to demonstrate advocacy data, and it has to be, you know, better than any peers across the

03:04globe. And they has to be, you know, across the different modalities. So back to your question, data is

03:13most important for the for the, you know, deal making.

03:17Can you tell us more about your goals, I guess, or even just aspirations for for expanding overseas?

03:23I mean, outside of China, you do have some business in develop developing markets. Do you expect to grow

03:29that? Yeah, of course. But right now, we are distributing commercialized products in developing

03:39markets. So also the next step or probably five to 10 years down the road, that's the, you know, the real

03:47international milestone that we are we are looking forward to. So by do in order to do that, we really

03:55need to get the, for example, our PD-1 VEGF licensed Pfizer get it approved in the US, in Europe, in Japan, all the

04:04developed countries. So that's the real internationalization that we are talking about.

04:10Understood. So Tony, the just I guess back to the numbers, and this goes into obviously the longer term plans of how big your

04:17overseas pie gets, the so the upfront payment was 1.2 B, you could be eligible to as much as 4.8 billion, obviously,

04:29depending on many, many factors and how things go. It's the 4.8 billion, just to clarify, is that a

04:34fixed amount? Or is that flexible to the upside, depending on what happens? Or is that is that the

04:38ceiling? Just to help us understand, of course, just this specific transaction.

04:43Yeah, so so a euro ordinary business development transaction, there are three elements. First is

04:50upfront, okay, we have a 1.5 altogether from Pfizer. And the second element is what we call milestone. And

04:59milestone meaning that once you achieve certain stage of the development, that triggers payment. For

05:05example, if you kick off a phase two or phase three clinical trial, in whatever indication, then it

05:13triggers a payment. Okay. And the second trigger point will be once the drug is approved, and you get

05:20another payment. And the third trigger point will be a certain amount of sales amount. So once you achieve,

05:29for example, 500 million, 1 billion US, that triggers another payment. So all three are milestone payments.

05:37So 4.8, as you see in our transaction with Pfizer is to add them up.

05:42So yeah, I mean, this Pfizer announcement to, they mentioned in this in this conference that they're

05:50going to launch more late stage trials. What does that mean for a 3S bio? Does that speed up? And how

05:56quickly can things speed up in terms of you reaching some of these milestones now?

06:00Well, so basically, if Pfizer kick off a phase three transaction, a clinical trial, we are entitled to

06:09receive a milestone. Okay, so but on top of the milestone, what make what is even more meaningful is

06:19once you kick off, for example, if you look at colorectal cancer, Pfizer also announced that the

06:25first patient in that trial was enrolled as of last year. So that was a really meaningful milestone.

06:33Because if I if I understand it correctly, that that should be the ever first patient enrolled in a phase

06:43three by a global multinational. That really marks the milestone because it's really the time that

06:53kickstart the real phase three clinical trial. That means we we are even closer bringing this drug to

07:00the, you know, large on met medical needs. And the so from a financial perspective, as you said,

07:10yeah, it will trigger, of course, a milestone payment. And once that indication is approved,

07:16that will trigger another regulatory milestone. And when the drug is, you know, starts to be

07:23a commercialized that will trigger both commercialization milestone, as well as the tiered

07:29royalties, basically, that's a sales, you know, percentage of the sales generated from that drug.

07:40Tony, good problem to have, we spent most of this interview talking about one, one drug, I believe you

07:46still have about 30 in your pipeline, just help us understand what the pipeline looks like. And perhaps

07:51give a sense, is there any, are there any specifics there that you're, you're keen to, you think the

07:57market should be attuned to? Yeah, of course. Just like what, what we discussed in the, in the

08:05beginning of the interview, we do have a few other, you know, by specifics. The one we, we are partnering

08:12with the Pfizer is a by specific, it's called a PD-1 VGF. But along with that, we do have a few other

08:17bispecific and trispecific, for example, PD-1 HER2, and the PD-1 PD-L1. Those are both in phase two

08:26clinical trials. And we have a B7H3 interleukin 15, it's a immunocytocane, it's a bispecific. And we

08:35have a MUX17 CD3 CD28, which is a trispecific. So these, these two are in phase one clinical trial in

08:44China. And all of the four assets, we have obtained a clinical trial approval from the U.S. FDA.

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