On September 29, Shi Pharma Group signed an exclusive licensing agreement with Jiangsu Conri Pharma on the development and commercialization of JSKN003 in mainland China. JSKN003 is a HER2-targeting bispecific antibody-drug conjugate (ADC) with dual HER2 targeting, giving it stronger internalization induction and bystander killing effects, making it highly active against HER2-expressing tumors. Currently, JSKN003 is undergoing Phase I clinical trials in Australia and Phase I/II and Phase III clinical trials in China.

Next, Jinmant Bio (a wholly-owned subsidiary of Chiatai Tianqing Pharmaceutical Group) will be granted exclusive license and sublicensing rights for the development, sales, promised sales, and commercialization of the product. They will bear all clinical development costs and become the sole marketing authorization holder for JSKN003 in Mainland China for that field. According to the agreement, Corning Jerry has the right to receive a total of up to 3.08 billion RMB in upfront and milestone payments, including receiving 400 million RMB upfront payment, 300 million RMB in development milestone payments related to the first patient enrolled in multiple registered clinical trials, regulatory milestone payments based on regulatory approval progress, and sales milestone payments.

In addition, Corning Jerry also has the right to collect a double-digit percentage of the net product sales of JSKN003 as a royalty fee.The domestic equity transaction of innovative drugs is becoming increasingly active, and this transaction has set a new record for upfront payments in domestic equity transactions of domestic innovative drugs. Going back to 2021, Simcere Pharmaceutical Group and CStone Pharmaceuticals have had previous collaborations. In August 2021, CStone Pharmaceuticals signed a development and commercialization licensing agreement for its independently developed anti-HER2 bispecific antibody KN026 in mainland China with Janssen Biotech, with a total transaction amount of 1 billion RMB and double-digit tiered sales royalties.

From the recent actions of the Stone Pharmaceutical Group, it seems that they are no longer satisfied with developing in isolation, but are constantly expanding through acquisitions and collaborations. In its 2023 annual report, the Stone Pharmaceutical Group pointed out that while continuously enhancing internal innovative research and development capabilities, it is actively promoting business expansion efforts.

Since the end of August, Shiyao Group officially took over *ST Jingfeng. With the absolute advantage, Shiyao Group is expected to dominate the market of linalool emulsion injection. In early September, Liu Yongjun was appointed as its CEO and Global R&D President, and the company announced a huge HK$5 billion share buyback. In mid to late September, Shiyao Innovative Pharmaceuticals announced that the former chairman Pan Weidong resigned, and the general manager Yao Bing took over. In less than a month, significant changes have occurred from Shiyao Group to its subsidiary, indicating a new direction for Shiyao Group.

Currently, ADCs are sweeping the globe, with hundreds of ADC drugs in development, and various BD transactions continuously stimulating the industry. As a key treatment modality in oncology, ADCs have clear advantages over standard treatments for various indications. ADC is one of the eight technical innovation research and development platforms of Stone Pharmaceutical Group, providing strong support for the development of its innovative drugs. Stone Pharmaceutical Group has a rich R&D pipeline in the ADC field, with major ADC drugs including SYS6002 injection, SYS6023, etc. In its 2024 interim report, Stone Pharmaceutical Group expects to have nearly 50 new products/new indications to be applied for marketing in the next 5 years. In addition to this collaboration, Stone Pharmaceutical Group has also acquired immune antibodies, ADCs, mRNA, etc., from the acquisition of Giant Stone Biotech.

However, despite the obvious strong development momentum of the Stone Pharmaceutical Group, it also faces accompanying challenges. The semi-annual report for 2024 shows that the Stone Pharmaceutical Group achieved a revenue of 16.284 billion yuan, an increase of 1.3% year-on-year; and a net profit of 3.02 billion yuan, an increase of 1.8% year-on-year.

China Resources Pharmaceutical Group owns several blockbuster products, among which Enbipu, a leading player in the field of stroke treatment, has seen a slowdown in sales growth. The core patents of Enbipu injection and capsules are expiring one after another, leading to fierce competition from generic drugs.Chiatai Qingchun Pharmaceutical Group has stated that its eight innovative technology platforms (nanoparticles, long-acting injections, mRNA, siRNA, ADC, monoclonal antibodies, bispecific antibodies, PROTAC, and other research and development technology platforms) will launch a blockbuster product every year in the future.