A Strategic Partnership in Oncology
Takeda has agreed to pay Innovent Biologics $1.2 billion upfront to acquire rights to two of its oncology programs, in a deal that could ultimately reach $10.2 billion in milestone payments, according to a regulatory filing. The partnership places the biologics at the core of Takeda’s strategy to secure new growth engines as it transitions beyond its blockbuster inflammatory bowel disease therapy, Entyvio.
Fortifying the Pipeline for a Post-Entyvio Era
Entyvio currently underpins Takeda’s commercial success, but with key patents set to expire by 2032, the Japanese drugmaker is bracing for the arrival of biosimilar competitors that could erode its market share. While the exact timing of that impact remains uncertain, Takeda is proactively seeking to fortify its pipeline after its earlier bet on cell therapy failed to deliver.
Inside the Innovent Deal: The Two Key Assets
Through the Innovent partnership, Takeda gains access to IBI363 and IBI343, two experimental drugs that have demonstrated encouraging activity in certain solid tumors. The move extends a growing trend of cross-border collaborations between Chinese and global pharma companies, reflecting Takeda’s intent to source future growth from innovative biologics.
IBI363: A Dual-Mechanism Approach
IBI363 works by simultaneously blocking PD-1 signaling and engaging IL-2 pathways, a dual mechanism intended to stimulate and expand tumor-targeting T cells while neutralizing immune suppression. The design aims to amplify antitumor immune responses, building on a concept that has intrigued drug developers for years. Several companies – including Bristol Myers Squibb, which previously entered a costly but ultimately unsuccessful collaboration with Nektar Therapeutics – have sought to make use of IL-2’s potential to enhance the reach and effectiveness of cancer immunotherapies.
Innovent is currently conducting phase 2 studies of IBI363 in lung and colorectal cancer patients, with a global phase 3 study in non-small cell lung cancer slated to launch in the coming months. These studies expand on data from more than 1,200 individuals, which has increased the company’s confidence that IBI363 could serve as a next-generation backbone in immuno-oncology treatment strategies.
Under the terms of the agreement, Takeda will shoulder 60% of the development expenses for the program and, in return, receive the same percentage of any future profits. The Japanese pharma giant will take the lead on co-commercialization in the U.S. and hold exclusive rights to market the therapy outside of both the U.S. and China.
IBI343: A Promising Antibody-Drug Conjugate (ADC)
The second asset covered by the deal, IBI343, is an antibody-drug conjugate (ADC) that targets Claudin 18.2, a protein commonly expressed in certain gastrointestinal cancers. Within this crowded therapeutic field, Innovent is aiming to distinguish its ADC by focusing on a more favorable gastrointestinal toxicity profile, setting it apart from competitors such as AstraZeneca’s AZD0901.
Innovent is currently conducting a phase 3 trial of IBI343 in gastric cancer across Japan and China, having already wrapped up a worldwide phase 1/2 study. Building on those efforts, Takeda intends to extend development into first-line treatment settings for both gastric and pancreatic cancers. Under the agreement, Takeda gains exclusive rights to advance and market IBI343 outside of China, broadening its reach into key international markets.
Beyond mere numbers, Takeda’s commitment to these assets underscores a recognition that innovation in oncology is rapidly shifting toward bispecific antibodies, ADCs and novel modalities. By integrating Innovent’s pipeline, Takeda gains access not only to the molecules but also the expertise and development momentum behind them. For Takeda patients and global markets, this could mean faster access to next-generation treatments and improved global commercial reach.
However, the path forward for Takeda is not without complexity. Takeda must navigate regulatory approvals, manufacturing challenges, global market access, and the commercialisation of new assets in diverse regulatory environments. The success of this deal for Takeda will depend on the company’s ability to execute clinical development, manage safety and efficacy data, and bring these treatments to patients around the world.
In conclusion, Takeda’s deal for Innovent’s cancer assets marks a major chapter in the company’s transformation. With this acquisition, Takeda is making a decisive bet on oncology as a growth engine — the next steps will determine how effectively it translates opportunity into clinical and commercial success.
