Takeda Pharmaceutical struck a $1.2 billion licensing agreement with China’s Innovent Biologics for two late-stage cancer treatments, marking another major acquisition as the Japanese drugmaker prepares for patent losses on its top-selling inflammatory bowel disease drug Entyvio.
The transaction gives Takeda global rights outside Greater China to IBI363, a bispecific antibody being tested in lung and colorectal cancers, and IBI343, an antibody-drug conjugate targeting gastric and pancreatic tumors. Innovent stands to collect up to $10.2 billion in additional milestone payments, bringing total potential deal value to $11.4 billion.
The agreement follows a broader industry shift, with Western pharmaceutical companies increasingly turning to Chinese biotechs to replenish pipelines. Roughly one-third of major pharma’s licensed assets in 2024 originated from China, according to investment bank Stifel.
Takeda faces mounting pressure as Entyvio patents expire in the U.S. and Japan next year. The drug generated approximately ¥152 billion ($1.4 billion) in fiscal 2022. While company executives described the Innovent programs as potentially transformative for growth beyond 2030, both drugs remain in clinical trials with no guaranteed approval.
More than 1,200 patients have received IBI363 in studies, while over 340 have been treated with IBI343. Takeda plans to establish U.S. manufacturing for both treatments.
