Novartis is spending $70 million upfront on a small molecule antitumor drug from the Chinese biotech Chengdu Baiyu.
The Swiss drugmaker will get an exclusive global license for the development and commercialization of the drug candidate. Baiyu could get up to $1.1 billion in milestones and tiered royalties on product sales, according to a Wednesday release.
The companies did not disclose the asset’s mechanism, target indication or stage of development. A Novartis spokesperson said in a statement it would detail future development plans in due course.
Nonetheless, the Chengdu-based biotech said it is focused on “exploring new therapeutic modalities to activate the immune microenvironment” and treat traditionally challenging “cold tumors,” which have low response rates to available immunotherapies such as PD-1/PD-L1 drugs.
Baiyu has five solid tumor assets in its pipeline, which include mechanisms that target DNA-dependent protein kinase. The biotech’s lead asset is in a Phase 2 study, while another is in a Phase 1 trial. It has been researching and developing drug candidates using ginkgolides, an active ingredient found in ginkgo biloba, for more than a decade.
Novartis has had a spate of oncology deals this year. The company bought German antibody biotech MorphoSys for $2.9 billion in February after two decades of collaboration. In May, it expanded its radiopharmaceutical footprint with a $1 billion buyout of Mariana Oncology.
Two months later, Novartis spent $150 million upfront on a research pact involving several myeloid engagers developed by Dren Bio. Last month, it announced plans to use $200 million to grow its radioligand manufacturing capabilities, including building a new site in California and expanding an existing site in Indianapolis.