Hengrui, Innovent kick off a busy deal-making New Year

（the article has been updated to make the text concise and cohesive)

Chinese biotechs are starting the year off strong with a flurry of deal-making. Suzhou-based Innovent Biologics and Swiss pharmaceutical giant Roche have signed a significant agreement, marking Roche's deeper dive into the growing antibody-drug conjugates (ADC) space.

The deal involves Innovent’s IBI2009, an ADC targeting DLL3, with an upfront payment of $80 million and the potential for up to $1 billion in total, depending on milestones. Roche has secured global rights (excluding China) to the early-stage asset, which is being developed for small cell lung cancer (SCLC).

In a parallel move, Jiangsu-based Hengrui Medicine has out-licensed its own ADC asset, SHR-4849, to IDEAYA Biosciences. This novel DLL3-targeting ADC is designed with a Topo-I payload. Hengrui will receive an upfront payment of $75 million, with up to $200 million in development and regulatory milestone payments, plus additional commercial milestones and royalties based on net sales.

Both assets are currently in Phase 1 trials in China for small cell lung cancer, a high unmet need in oncology.

These two significant deals signal a busy year ahead for Chinese biopharma, with more out-licensing agreements expected. Chinese biotech companies are increasingly becoming key partners for overseas firms looking for innovative oncology assets, particularly in the ADC space.

Early predictions indicate that 2025 will be a strong year for deal-making, especially with the anticipated business-friendly policies of the incoming U.S. administration.