Deal focus: Antengene targets unmet cancer problems

Despite being the world’s second-largest pharmaceutical market, China isn’t known for its prowess in drug innovation. The country has some of the highest incidence rates for cancer, diabetes and liver diseases, but homegrown treatments to match those produced by the likes of Roche and Novartis have yet to emerge.

This could soon change, based on the spate of private equity investment into local start-ups launched by overseas-trained Chinese scientists and aggressive policy support. 

Shanghai and Shaoxing-based Antengene is a case in point. The company – founded in 2017 by Jay May, who has previously worked for Novartis Oncology, Celgene Corporation, and Johnson & Johnson Pharmaceutical’s R&D unit – focuses on developing and in-licensing treatments for solid tumors and cancers that affect the blood and lymph system, as well as anti-viral infection drugs.

Last week, it raised $120 million in a Series B round led by Boyu Capital and FountainVest Partners. Other participants include Celgene, WuXi Corporate Venture Fund, Taikang Insurance Group, Qiming Venture Partners and TF Capital. 

Big-name investor interest reflects the potential for cancer treatments in China. There were 4.3 million cancer diagnoses in 2015, twice the total from 2000 and more than any other country. The five-year survival rate for Chinese cancer patients stands at around 30%, compared with 60-70% in the US, according to the China Anti-Cancer Association. 

“There is a huge unmet medical need in Asia, especially for cancer. Till this day, we are still at the infancy of exploring treatments for tumors,” says Ariel Guo, a director for pipeline strategy and project management at Antengene. “We would like to solve this problem by pursuing first in class and best in class, truly novel drugs instead of replicating the molecules developed by established players.”

The company’s most advanced cancer treatment program is Selinexor, which is being developed in partnership with US-based Karyopharm Therapeutics for commercialization in mainland China and Macau markets. It is currently in phase-three clinical trials. Meanwhile, Antengene is working with Celgene, another US biotech player, on a drug that targets liver cancers linked to hepatitis B. Phase-two trials are underway across Asia.

“Unlike in the US and Europe where most liver cancers are caused by the hepatitis C virus or non-alcoholic fatty liver disease, patients in China and the majority of Asia usually develop this unfortunate disease through exposure to the hepatitis B virus. There has never been a drug dedicated to the treatment of this specific patient population, and so we are very bullish about its prospects,” Guo adds.

The two drugs are expected to be released in China within the next two years. By the time this happens, Antengene could be well on the way to realizing its ambition of a listing in Hong Kong or on NASDAQ.   

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• Topics
• Greater China
• Expansion
• Healthcare
• China
• Fountainvest Partners
• Boyu Capital
• Qiming Venture Partners