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  • Pfizer signs an alliance with Innovent worth up to $10.5 billion & GSK reports 19% functional cure rate in hepatitis B

Pfizer signs an alliance with Innovent worth up to $10.5 billion & GSK reports 19% functional cure rate in hepatitis B

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Joachim Eeckhout & Eduardo Longoria
June 01, 2026

Good morning. Wild biotech pivots are some of my favorite stories to tell, like when Italian Genenta Science pivoted to manufacturing guns last January, or when we saw a wave of biotechs on the brink of collapse pivoting into cryptocurrency companies over the past few years. But this one is new: Hoth Therapeutics is pivoting from developing a neurokinin 1 receptor antagonist to producing a nanomagnetic AI chip that could be used in space data centers. They will rename the company Rocket One, but if you ask me, or any Star Wars fan, with such an application, they should have kept the Hoth name.

— Joachim E.

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SNAPSHOT

Pfizer makes its biggest China biotech bet yet, worth up to $10.5 billion with Innovent

Pfizer and Innovent have formed a broad oncology partnership covering up to 12 cancer-drug programs, focused on antibody-drug conjugates (ADCs) and multispecific antibodies. Innovent will lead discovery and early research, while Pfizer will take responsibility for global development after Phase 1 testing.

Why it matters: The deal highlights the growing role of Chinese biotech firms in global drug innovation. It also strengthens Pfizer’s cancer pipeline while giving Innovent access to Pfizer’s global development, regulatory, and commercialization capabilities.

Backstory: Over the past several years, multinational drugmakers have increasingly licensed or partnered on China-developed medicines. China’s biotech sector has rapidly expanded, producing a large number of drug candidates that can move quickly into human testing. More than 60 licensing deals were signed in 2025, with dozens more already completed in 2026.

Big picture: The agreement reflects a shift in the pharmaceutical industry’s innovation landscape. While the U.S. and Europe have historically dominated drug development, Chinese companies are becoming major sources of new therapies. This trend has sparked debate in both industry and government circles about competitiveness, supply chains, and technological leadership.

Zoom in: Innovent will receive $650 million upfront. The company could earn up to $9.85 billion in milestone payments. The partnership covers 12 potential cancer medicines with 8 programs originating from Innovent and four are Pfizer-proposed discovery programs. Pfizer gains worldwide rights to some assets and will share rights and development costs on others while Innovent is also eligible for royalties on approved products.

What’s next: The companies will begin advancing the programs through discovery and early clinical development. Success will depend on whether the candidates demonstrate safety and efficacy in human trials and achieve regulatory milestones.

SNIPPETS

What’s happening in biotech today?

🧫 HepB breakthrough: GSK reported that its chronic hepatitis B drug candidate, bepirovirsen, achieved a 19% functional cure rate across two Phase III trials involving more than 1,800 adults with noncirrhotic chronic hepatitis B, compared with 0% in the placebo group, meeting the studies’ primary endpoints. The results exceeded the 16% cure rate seen in Phase II and fell within GSK’s target range of 15%–20%. Analysts view the data as commercially promising, with forecasts suggesting significant sales potential if adopted broadly by eligible patients. The FDA and European Medicines Agency are reviewing the drug, positioning GSK for a potential U.S. launch later this year. Bepirovirsen was licensed from Ionis Pharmaceuticals in 2019 under a deal worth up to $260 million.

🎯 ADC challenger: At ASCO 2026, Eli Lilly presented early Phase 1 data for LY4052031, a next-generation Nectin-4-targeting antibody-drug conjugate (ADC) being developed for advanced or metastatic bladder cancer and positioned as a potential competitor to Pfizer and Astellas’ Padcev. In the Nexus-01 trial, 42% of 48 evaluable patients experienced tumor shrinkage, including responses in patients previously treated with Padcev and Keytruda as well as those who had not received Padcev. LY4052031 uses a topoisomerase I inhibitor payload, which Lilly believes may overcome resistance mechanisms. While most side effects were manageable, a group of patients experienced severe toxicity, including three deaths. Lilly plans to continue development through a Phase 1b expansion and may advance directly to Phase 3 if results remain favorable.

📈 Myeloma boost: At ASCO 2026, Bristol Myers Squibb reported Phase 3 results showing that its cereblon E3 ligase modulator (CELMoD) candidate mezigdomide significantly improved outcomes for patients with relapsed or refractory multiple myeloma. In the SUCCESSOR-2 trial involving 479 patients, mezigdomide combined with Amgen’s Kyprolis and dexamethasone more than doubled median progression-free survival to 18 months versus 8.3 months for Kyprolis and dexamethasone alone, reducing the risk of disease progression or death by 52%. The regimen also increased complete response rates to 26.7% compared with 8.9% in the control group. The results support plans to advance mezigdomide as a potential new treatment option for multiple myeloma.

🧬 Subgroup success: AstraZeneca presented subgroup data from its Phase 3 trial of anselamimab in light-chain (AL) amyloidosis, arguing that the drug may still support regulatory approval despite missing its primary endpoint in the overall study. The company reported that, in a prespecified subgroup of 72 patients with the rarer kappa light-chain form of the disease, anselamimab reduced mortality to 31.3% versus 58.3% with placebo and lowered cardiovascular hospitalizations, representing a 62% improvement in survival. However, the drug showed no meaningful benefit in the larger lambda light-chain subgroup, which accounted for most trial participants. AstraZeneca is pursuing a regulatory strategy focused on the kappa population, with a potential approval decision possible this year.

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