Cailian Press, December 31 (Reporter: Wu Chao) – Another Chinese pharmaceutical firm has secured a major overseas Business Development (BD) deal exceeding $1 billion for a DLL3-targeted drug. Zelgen Biopharma (688266.SH) has reached an agreement with a global pharmaceutical giant for the worldwide development and commercialization of its core pipeline product, ZG006 (Alveltamig), with a potential total value surpassing $1.2 billion.
Zelgen Biopharma announced this evening that it has entered into a strategic collaboration and license option agreement with a holding company of the AbbVie Group (registered in Bermuda, hereinafter "AbbVie") regarding ZG006. Under the terms, AbbVie will obtain exclusive rights to develop and commercialize ZG006 outside of Greater China (including Mainland China, Hong Kong, Macau, and Taiwan), while Zelgen retains all rights within the Greater China region.
According to the agreement, Zelgen will receive an upfront payment of $100 million, plus near-term clinical milestone payments and license-option-related payments of up to $60 million. Should AbbVie exercise its license option, Zelgen is eligible for additional milestone payments of up to $1.075 billion, alongside tiered royalties ranging from high-single digits to mid-double digits on net sales of ZG006-containing products outside Greater China.
ZG006 is a novel trispecific T-cell engager targeting DLL3, currently in the late stages of clinical development for the treatment of small-cell lung cancer (SCLC) and other DLL3-expressing malignancies. The drug has received IND (Investigational New Drug) approvals from both the U.S. FDA and China's NMPA. It has been recognized as a "Breakthrough Therapy" by the NMPA's Center for Drug Evaluation (CDE) for recurrent or progressive advanced SCLC and DLL3-positive neuroendocrine carcinoma, and has also been granted Orphan Drug Designation by the U.S. FDA.
Cailian Press notes that the "gold content" of the DLL3 target has risen steadily over the past two years, with multiple Chinese firms landing massive BD deals. In December last year, Hengrui Pharma licensed the global rights of SHR-4849 to IDEAYA Biosciences in a deal worth up to $1.045 billion. In January this year, Innovent Biologics announced the licensing of IBI3009's global rights to Roche, involving an $80 million upfront payment and up to $1 billion in milestones.
Zelgen Biopharma stated that this collaboration is expected to support the expansion of ZG006 into international markets across multiple indications, providing more treatment options for global patients while enhancing the company's reputation for innovation and international influence.
Financially, the deal will significantly improve Zelgen’s position. In the first three quarters of 2025, the company reported revenue of 593 million RMB (a 54.49% year-on-year increase) and a net loss of 93.42 million RMB, with R&D investment accounting for 48.80% of revenue. The $100 million upfront payment (approx. 699 million RMB) will directly bolster cash flow—equivalent to 1.8 times the company's total R&D expenses for 2024 (388 million RMB)—potentially accelerating ZG006's clinical trials and commercialization preparations. Furthermore, AbbVie’s global R&D resources and commercial network are expected to help ZG006 penetrate overseas markets rapidly.
However, uncertainties remain in drug R&D and commercialization. Zelgen cautioned in its announcement that the final regulatory approval and successful overseas commercialization of ZG006 carry inherent risks. Future milestone payments are contingent upon meeting specific R&D and sales targets, meaning the final total remains uncertain.
Previously, Zelgen Biopharma signed a service agreement with ATSA (a Swiss subsidiary of Germany’s Merck KGaA) for its recombinant human thyrotropin for injection, authorizing ATSA as the exclusive marketing service provider in mainland China, with a total potential authorization value of up to 250 million RMB.

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