Japan’s Solasia Fails to Secure China Deal, Lowers Guidance

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

As 2024 draws to a close, there’s no happy ending for Japanese biotech company Solasia.

The company had initially expected to finalize a licensing agreement for its drug Darvais in China by the end of December, but now it acknowledges that this agreement is unlikely to happen before the year ends. Solasia had incorporated the deal into its 2024 financial forecasts, but now must revise its guidance.

Solasia did not disclose the name of the Chinese partner involved, only stating that it was a large corporation. According to a statement filed with the Tokyo Stock Exchange, the company reached a final agreement with the potential partner, but the deal could not be finalized due to disagreements between the corporation and its parent group holding company.

Despite this setback, Solasia remains hopeful. The company indicated that it is still in talks with other potential partners and emphasized its commitment to pursuing licensing opportunities, including in China, as a key business priority.

Darvais is a novel mitochondrial-targeted anticancer drug, an organic arsenical compound that combines dimethylated arsenic with glutathione.

As a result of the deal's delay, Solasia has revised its forecast, now expecting an operating loss of between 1.15 billion and 1.5 billion Japanese yen, up from the previously projected 500 million yen.