Lepu Biopharma Secures $1.6B ADC Licensing Deal with ArriVent
Deal News | Jan 22, 2025 | Ropes & Gray
Ropes & Gray has advised Shanghai-based Lepu Biopharma in a significant licensing deal with ArriVent BioPharma valued up to $1.6 billion. The agreement gives ArriVent exclusive rights to develop and commercialize MRG007, an antibody-drug conjugate (ADC) for gastrointestinal cancers, outside of China. This marks a strategic effort to advance treatments for colorectal, pancreatic, and other GI cancers. The structured agreement includes an upfront payment and milestones that could reach $1.16 billion, showcasing the potential within the burgeoning ADC market. The legal advisory from Ropes & Gray highlights the complex intersection of international business and biopharmaceutical innovation.
Sectors
- Biopharmaceutical
- Legal Services
Geography
- China – Lepu Biopharma is based in Shanghai, China and the licensing rights pertain to regions outside China.
- United States – ArriVent BioPharma is likely involved in the transaction within the US market, as the ADC commercialization is aimed at markets outside of China.
Industry
- Biopharmaceutical – The focus on antibody-drug conjugates (ADCs) for cancer treatment positions the activities within the biopharmaceutical industry, particularly innovative cancer therapies.
- Legal Services – Ropes & Gray was involved in providing legal services for the licensing agreement, highlighting the role of legal advisory in M&A and licensing deals within the biopharmaceutical industry.
Financials
- $1.6 billion – The total potential value of the licensing agreement, including upfront, milestone, and sales payments.
- $47 million – Upfront and near-term milestone cash payments to Lepu Biopharma.
- $1.16 billion – Potential development, regulatory and sales milestone payments to Lepu Biopharma.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lepu Biopharma | Target company | Company | A Shanghai-based biopharmaceutical company granting ArriVent BioPharma licensing rights for the development of MRG007. |
| ArriVent BioPharma | Bidding company | Company | A company obtaining exclusive development and commercialization rights of MRG007 outside of China. |
| Ropes & Gray | Legal advisor | Company | An international law firm providing legal advisory to Lepu Biopharma in the licensing agreement. |
| Abigail Gregor | Lead lawyer | Person | Life sciences licensing partner at Ropes & Gray, leading the advisory team. |
| Jimmy Chen | IP counsel | Person | IP transactions counsel involved in the licensing agreement. |
| Amanda White | Life sciences associate | Person | Life sciences associate contributing to the legal advisory. |
| David Saltzman | Tax partner | Person | Tax partner providing tax-related expertise in the transaction. |
| Zhen Zhang | Tax associate | Person | Tax associate assisting with the tax elements of the transaction. |