GenSci098

The latest in a string of cross-border deals, New York-based Yarrow Bioscience has gained exclusive, ex-China rights to a monoclonal antibody (mAb) directed against thyroid-stimulating hormone receptor (TSHR) from the Shanghai Scizeng Medical Technology subsidiary of Changchun GeneScience Pharmaceutical, also known as GenSci. The mAb — dubbed GS-098 in China, and YB-101 outside of the country — is in clinical testing for Graves’ disease (GD) and thyroid eye disease (TED). By blocking the pathogenic activity of thyroid-stimulating autoantibodies, YB-101 is designed to inhibit the biological pathway responsible for hyperthyroidism and orbitopathy, whilst avoiding systemic immunosuppression.The asset "originated from our Shanghai R&D centre, is a first-in-class molecule and has demonstrated the best-in-class potential,” said Lei Jin, the general manager and chief scientist of GenSci. Under the licensing agreement, announced Monday, GenSci will receive $70 million upfront and is eligible for $50 million in near-term milestones, as well as additional development, regulatory and commercial milestones, plus tiered double-digit royalties; the deal's total value could reach just under $1.4 billion. GenSci will retain development and commercialisation rights to the mAb in China. "This collaboration represents a tremendous opportunity for Yarrow and GenSci to advance GS-098 (YB-101) toward meaningful clinical milestones in both Graves’ disease and thyroid eye disease," said Yarrow CEO Rebecca Frey. "Patients suffering from these debilitating autoimmune conditions continue to face substantial unmet needs. YB-101’s highly targeted, TSHR-directed mechanism of action has the potential to transform the treatment landscape."Yarrow and GenSci's tie-up is one of more than a dozen deals inked this year that's seen a US-based drug developer get rights to a China-originated asset. For further analysis, see ViewPoints: Investor confidence builds around Chinese assets, with caveats and ViewPoints: Cross-border deals still worth the risk despite rising US-China tensions.