Novartis is investing over $70 million in Chengdu Baiyu Pharmaceutical to bolster its roster of cancer therapy prospects. It recently struck a $1.1 billion deal which includes milestones for a small molecule developed by the Chinese biotech firm.
Baiyu has focused on the research of pharmacological substances related to Ginkgo biloba, a species of tree occurring in the East Asian region. The research has led to a series of botanical drugs. To position itself as a leader in the cancer treatment pipeline, Baiyu has developed multiple clinical-phase candidates aimed at treating solid tumors by targeting DNA-dependent protein kinases (DNA-PK) and PARP7. The pipeline also includes preclinical compounds targeting undisclosed mechanisms.
Novartis has already noted potential in one of Baiyu’s programs and has agreed to spend $70 million for the international license. What the Swiss drugmaker has got in exchange for the investment is not entirely clear though. In the statement Baiyu made, it did not elaborate on what the small molecule was aiming at, the types of cancer could treat, or the current development phase.
It said that the biological products and therapeutic are aimed at researching cancer and its treatment through targeted radiotherapy and immuno-oncology. Baiyu started two first-in-human trials of its first DNA-PK candidate earlier this year. The biotech began a phase 1 trial of its PARP7 inhibitor concurrently, during the second quarter.
Baiyu described the deal with Novartis as an achievement for the company in a bid to ensure that anti-tumor treatments can be made available globally.
