Goldman Sachs: INNOVENT BIO (01801) authorizes Roche's DLL3 ADC to establish a complete global infrastructure in the near future.

Goldman Sachs Group, Inc. released a report stating that INNOVENT BIO (01801) has licensed a new type of DLL3 targeting antibody-drug conjugate (ADC) IBI3009 to Roche (RHHBY.US) for $108 million. This DLL3 ADC transaction is the first major global licensing deal for INNOVENT BIO since its collaboration with Eli Lilly in 2020. The company's management previously mentioned that the licensing agreement is a recent, flexible, and direct global choice aimed at establishing a complete global infrastructure for the company in the near future. According to reports, on January 2nd, INNOVENT BIO announced a global licensing agreement with Roche to license a new type of DLL3 targeting antibody-drug conjugate (ADC) IBI3009 to Roche. Under the agreement: 1) INNOVENT BIO will grant Roche exclusive global development, production, and commercialization rights for IBI3009, 2) INNOVENT BIO will receive a $80 million upfront payment and be eligible for milestone payments of up to $1 billion (including research and commercial milestones), as well as tiered royalties on net sales, which can reach up to double-digit percentages. Goldman Sachs Group, Inc. stated that IBI3009 has received clinical trial approvals in Australia, China, and the United States, with the first patient in the Phase 1 study receiving treatment in December 2024. The collaboration with Roche has clear synergies, particularly in first-line treatment opportunities, where atezolizumab (Tecentriq) is currently the standard treatment for 1st line ES-SCLC (cisplatin/etoposide/atezolizumab combination therapy). In the long run, INNOVENT BIO's DLL3 ADC agreement sends a positive signal, possibly signaling the beginning of a more aggressive global expansion for the company in the coming years. Goldman Sachs Group, Inc. noted that INNOVENT BIO and Hutchison China MediTech have continued to announce DLL3 ADCs, and the ongoing active BD transactions of Chinese biotechnology/pharmaceutical companies are increasingly being recognized by global investors as additional value. As a leading biotechnology company in China, INNOVENT BIO has a strong global collaboration record. The company currently has a rich internal pipeline of globally licensed products, especially in the areas of IBI343 (CLDN18.2ADC) and IBI363 (PD-1/IL-2). The validated treatment target of DLL3 is increasingly being valued in different treatment modalities (BiTE, CAR-T, ADC). Despite the challenges in DLL3 ADC development and the limited clinical benefit of Rova-T in Phase 3 trials, new DLL3 ADCs are starting to show more differentiated clinical data, leading to increased interest in research and BD, with Zai Lab's ZL-1310 leading the way with competitive objective response rates and good safety, although the data is still in early stages.