Takeda strikes $11B oncology deal with Innovent to revive its pipeline

Takeda is partnering with China’s Innovent Biologics to license up to three next-gen cancer therapies in a deal worth over $11 billion, including $1.2 billion upfront and global rights (outside Greater China).

Why it matters: The agreement could revitalize Takeda’s oncology pipeline following recent losses of drug exclusivity and pipeline cuts, positioning it to fill treatment gaps with promising new therapies.

Backstory: Takeda’s ADHD drug Vyvanse recently went off-patent, triggering profit declines and restructuring. The company has since leaned into external innovation, including the licensing of an oral VEGFR1/2/3 tyrosine kinase inhibitor from China-based Hutchmed in 2023.

Zoom in: Takeda’s total commitment could include another $10.2B in milestone payments, plus a $100M equity stake in Innovent if all 3 of the therapies perform as they should. This is more likely for IBI363 as it is already in mid-stage trials and shows promise in hard-to-treat solid tumors. Despite being earlier along the clinical path, IBI343 and IBI3001 also show promise.  

Big picture: Global drugmakers are increasingly turning to Chinese labs for novel drug candidates, driven by patent cliffs and the rapid maturation of China’s biotech industry. These cross-border partnerships are reshaping the drug development landscape.