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Rising biotech deals involving Chinese drugs, Takeda's positive OX2R readouts, and LaNova's acquisition by Sino Biopharm made our news this week. Biotech deals involving assets developed in China are surging, a Jefferies report shows. Takeda is preparing its narcolepsy candidate oveporexton for an FDA filing after two positive phase 3 readouts. Merck & Co.'s PD-1xVEGF partner is being acquired. And more.1. China biotechs ‘reshaping’ US biopharma as outlicensing deals rise 11%: Jefferies reportAbout a third of biopharma’s outlicensing deal value in the first quarter of 2025 centered on Chinese assets, versus 21% during the same period in both 2024 and 2023, according to Jefferies. Since 2022, China biotechs have developed 639 first-in-class drug candidates, a sharp rise compared with prior years, Jefferies tallied.2. Takeda’s narcolepsy blockbuster hopeful secures double phase 3 wins, teeing up FDA filingTakeda’s OX2R agonist oveporexton has hit the mark in two phase 3 narcolepsy trials. The FirstLight and RadiantLight trials met their primary endpoints showing statistically significant improvements for the drug compared with placebo in excessive daytime sleepiness, as measured by the Maintenance of Wakefulness Test at week 12. The company is now preparing for an FDA approval filing.3. Sino Biopharm buys Merck's PD-1xVEGF bispecific partner LaNova for up to $951MLaNova Medicines, from which Merck & Co. recently licensed a PD-1xVEGF bispecific candidate, is being bought out by Chinese compatriot Sino Biopharmaceutical in a deal worth up to $951 million. In addition, LaNova also provided AstraZeneca with a GPRC5D-targeting antibody-drug conjugate. Before the LaNova transaction, very few, if any, Chinese pharmas have acquired innovative domestic biotechs.4. For Lundbeck and Otsuka's PTSD filing, FDA questions Rexulti efficacy after failed phase 3For an upcoming advisory committee meeting, the FDA flagged “discordant results” from two phase 3 trials that Lundbeck and Otsuka are using in their application for Rexulti, in combination with Viatris’ Zoloft, as a treatment for post-traumatic stress disorder. The FDA is asking experts to weigh in on whether an exploratory phase 2 study can overcome one negative phase 3.5. Otsuka inks $613M deal for Swedish biotech's autoimmune antibodiesOtsuka is paying $33 million upfront for Cantargia’s IL1RAP antibody, CAN10, as well as a backup candidate, against autoimmune and inflammatory disorders. The deal also includes up to $580 million in milestone payments and gives the Japanese drugmaker exclusive first rights of negotiation for Cantargia’s next-gen IL1RAP programs.6. Sun Pharma's alopecia med Leqselvi hits US market after Incyte patent settlementSun Pharma has reached a patent settlement with Incyte so the Indian company can launch its JAK inhibitor Leqselvi in the U.S. for severe alopecia areata. Sun will pay an undisclosed upfront payment plus royalty payments until the related patents expire. The deal ended a lawsuit in which Incyte claimed that Leqselvi would infringe on patents around its blockbuster ruxolitinib.7. FDA hands down citations to 3 drugmakers after inspections found contamination, testing concernsMeanwhile, a Sun Pharma plan in Gujarat, India was subject to a 19-page, eight-observation Form 483 following an FDA inspection in June. Some citations, such as “poor aseptic behavior and inadequate environmental monitoring,” had previously been flagged in an FDA warning letter in 2022. Separately, a Daewoo Pharm site in Busan, Korea, and a Glenmark facility in Madhya Pradesh, India, received FDA warning letters.Other News of Note:8. Astellas reports 22% sales bump for Izervay, expects trend to continue this year9. China sentences Astellas exec to 3.5 years in prison for espionage (Bloomberg)10. Hengrui's GLP-1/GIP agonist reports 18% weight loss in phase 3 trial, readies China push11. Acumen taps JCR’s blood-brain barrier tech for $555M Alzheimer’s deal12. GSK expands Medicines Patent Pool deal to allow generic production of cabotegravir for HIV treatment13. Kowa licenses Nicox’s intraocular pressure eye drop for up to €191.5M (release)14. Korea’s Illimis raises $42M series B to advance Alzheimer’s candidate (release)

Astellas reported a 22% sequential increase in quarterly sales of geographic atrophy drug Izervay and is projecting booming sales increases for the rest of the year and beyond. After reporting a 15% sequential decline in Izervay sales for the opening quarter of this year, Astellas has reversed the momentum for its geographic atrophy (GA) treatment and is projecting the upward trend to continue this year.In an investor event on Wednesday—three weeks ahead of its quarterly report—Astellas revealed a 22% sequential increase in Izervay sales for the period ending on June 30. The injected C5 inhibitor generated revenue of 15.9 billion Japanese yen ($110 million) in the most recent quarter, up from 13.8 billion Japanese yen ($91 million) in the first quarter.Astellas sees Izervay’s growth continuing to track upward—in the “high 20s or above"—for the next three quarters and is reiterating its fiscal year sales guidance of 105 billion Japanese yen ($750 million).In the longer term, Astellas is now tabbing peak sales for Izervay to reach between 200 billion and 400 billion Japanese yen ($1.3 billion to $2.6 billion) in the U.S. alone. Those figures match the company’s previous projection for peak global sales.Some analysts, however, aren’t buying into Astellas’ rosy expectations just yet. Despite the increase in quarterly sales, the figures came up far short of consensus, which were based largely on the company’s annual sales projection, according to analysts from ISI Evercore.“We wouldn’t be surprised to see Astellas miss their aggressive FY25 guidance,” they wrote in a note to investors.Meanwhile, analysts at Mizuho Securities have doubts about the growth of the GA market as portrayed by the company. Astellas said on Wednesday that, by 2029, it expects to treat at least 35% of the GA patient population in the U.S., crediting “broader upstream awareness and more patient referrals to retina specialists.”“Our biggest concern lies with an overall GA market where growth is potentially stalling,” Mizuho analyst Graig Suvannavejh, Ph.D., wrote in a note to investors, citing recent discussions with key opinion leaders (KOLs). “Despite Astellas' vision of future growth for Izervay in 2025 and beyond, we question what it will take for the CI class to meaningfully grow over time.” It's uncertain what this all means for Astellas’ rival in the GA market, Apellis. Two months ago, the Massachusetts company revealed sales of $130 million in the first quarter for Syfovre, which were down 22% sequentially.The company’s CEO, Cedric Francois, M.D., Ph.D., blamed inventory fluctuations and funding shortfalls in copay assistance programs for the sales decline.Eyes will be on Apellis when it reports its second quarter sales to see if Syfovre gets a similar sequential bump, which would be “supportive of a growing market,” Mizuho wrote.“On the other hand, given KOL feedback we've been hearing of a relatively slow-growing/flat market, there's potential of Izervay gaining at Syfovre's expense,” the analysts added. Astellas has had its own set of problems hindering the launch of Izervay. Early this year, the company took an impairment charge of 115 billion Japanese yen ($760 million) because of regulatory setbacks, including an FDA rejection for Izervay to broaden its label.In February, Astellas received a much-needed boost when the FDA lifted a 12-month restriction on the use of Izervay. With that and the sales upturn, the company said on Wednesday that it expects to hold 55% to 60% of the market share in the U.S. by 2029.