Oncology Innovation Powered by Investments and Competition from - - PowerPoint PPT Presentation

Cancer Progress New York, NY | May 7 - 8, 2019

Oncology Innovation Powered by Investments and Competition from China

Moderator: James T. Lee, PhD, Associate Principal, Cello Health BioConsulting, previously Defined Health Panelists:

• Iris Luo, MS, MBA, Head of Business Development, North America, Cstone Pharmaceuticals
• Ian Somaiya, CFO, TCR2 Therapeutics
• Jack Wu, PhD, Head of Business Development (USA), Adlai Nortye
• Ian Woo, MBA, President & CFO, Everest Medicines

Cancer Progress New York, NY | May 7 - 8, 2019

China BioPharma is Seeing an Unprecedented Boom Driven by Three Pillars: Policy, Money, and Need

• Regulatory:

– China joins ICH harmonizing global clinical development regulations/standards – Chinese NMPA speeds up clinical development process and opening up for global development – Accelerated approval set up for innovative therapeutics that are marketed overseas

• Finance:

– China putting economic force behind the industry by building biotech parks, providing subsidies and incentives for biotechs to develop innovative products – Chinese investors have raised significant capital to help the biotech boom both domestically and cross-borders, though new CFIUS process may become limiting – HKEX open to pre-revenue biotechs, with recent success of Cstone, Innovent and

• thers, but also cautionary tales of others (Ascletis, Beigene)
• Need for Therapeutics:

– Growing patient population, especially related to cancer, where innovative therapeutics are needed.

UBS 2018; ChinaBio 2018

Cancer Progress New York, NY | May 7 - 8, 2019

0.64 Bn 0.15 Bn 1.21 Bn 1.49 Bn 1.39 Bn 0.03 Bn 1.01 Bn 1.26 Bn 2.38 Bn 5.12 Bn 6.09 Bn 4.20 Bn 1 0 Bn 1 Bn 2 Bn 3 Bn 4 Bn 5 Bn 6 Bn 7 Bn 10 20 30 40 50 60 70 80 90 2014 2015 2016 2017 2018 2019 Total Deal Value ($Bn) Total No. of Deals

Total No. of Deals Distributed by Onco vs. Non-onco Deals (n=260)

Non-onco Onco Total Upfront Value Total Deal Value (TDV)

Since Last Year, Oncology is 50% of Deals, Driven by Interest in Innovative Therapeutics

BCIQ; *Note = Non-onco count also includes those deals where a therapeutic area wasn’t included/specified; Total Upfront = includes upfront cash and equity.

Q1

Year Top Oncology China Deal Upfront (USD) Total (USD)

2014 Altor and Shenzhen Beike $4M $200M 2015 Eli Lilly and Innovent $56M $456M 2016 Aveo and Canbridge $1M $134M 2017 Valeant/Dendreon and Sanpower $820M $820M 2018 Zymeworks and Beigene (2 deals) $60M >$1B 2019 Abpro and Chiatai Tianqing Pharma N//A $4B