<article>Danish biotech giant Genmab AS has agreed to acquire ProfoundBio Inc. for a hefty $1.8 billion, in another sign of foreign pharma’s growing interest in Chinese or Chinese-founded biotech firms.</article>

Danish biotech giant Genmab AS has agreed to acquire ProfoundBio Inc. for a hefty $1.8 billion, in another sign of foreign pharma’s growing interest in Chinese or Chinese-founded biotech firms.
The deal will give Genmab worldwide rights to ProfoundBio’s portfolio of next-generation antibody-drug conjugates (ADCs), which consists of three clinical and multiple preclinical programs, both companies announced Wednesday.
ProfoundBio is a privately owned clinical-stage biotech company developing novel ADCs for the treatment of certain cancers, including ovarian cancer.
ADCs can combine the precise targeting capabilities of antibodies with the cancer-killing power of drugs. This means they can directly deliver drugs to tumour cells, minimising damage to healthy cells and potentially reducing side effects associated with traditional chemotherapy.
According to the announcements, the proposed all-cash transaction is expected to be completed in the first half of this year. “Genmab’s deep expertise in antibody drug development and commercialization makes this a compelling union that will allow us to rapidly develop and realize the full potential of our ADC therapies,” said Baiteng Zhao, ProfoundBio’s chairman and CEO.
Established in 1999, Genmab is listed on Nasdaq and Copenhagen. Its global presence spans from its headquarters in Copenhagen to locations in the Netherlands, the US and Japan.
ProfoundBio was co-founded by Zhao, who received a bachelor’s degree in biology from China’s prestigious Peking University before obtaining a Ph.D. in pharmaceutics from the University of Texas at Austin. He has years of experience working at both large pharma and small biotech companies, including US giant Merck &amp; Co. Inc.
ProfoundBio operates from its headquarters in Seattle and runs a research and development center in the eastern Chinese city of Suzhou.
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Since 2021, the startup has raised more than $250 million.
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Since 2021, the startup has raised more than $250 million through various financing rounds, with the latest series B round closing earlier this year, according to previous statements.
ProfoundBio’s largest shareholder is biomedical venture capital (VC) firm Lilly Asia Ventures. Other investors include healthcare fund LYFE Capital, healthcare investment firm Ally Bridge Group, and VC firm HongShan, formerly known as Sequoia China.
After enduring the chill of a prolonged capital winter, Chinese drugmakers have begun to feel a thaw in recent months, as deal-making has surged, along with increased attention from international rivals for their innovative treatments.
In December, British-Swedish biopharma titan AstraZeneca PLC agreed to buy out China-based clinical-stage biopharmaceutical company Gracell Biotechnologies Inc. for $1.2 billion. The transaction was completed earlier this year.
In January, SanReno Therapeutics, a Chinese clinical-stage biotech firm focused on kidney diseases, announced its acquisition by Swiss pharmaceutical company Novartis.
Last month, U.S.-based Nuvation Bio Inc. agreed to acquire a stake in Chinese clinical-stage biotech company AnHeart Therapeutics Ltd.
Meanwhile, the global market for innovative drug deals is active. Pharmaceutical multinationals are intensifying efforts to broaden their product offerings and identify the next breakthrough medications as major economies emerge from the Covid-19 pandemic.
Market data show that Chinese drugmakers announced a record of more than $45 billion in out-licensing deals for innovative drugs with international partners last year, allowing the latter to use their products, technology or intellectual property.
The deals can not only provide much-needed cash for Chinese companies, but also serve as endorsements for Chinese-developed treatments, industry sources told Caixin.
Han Wei contributed to this story.
This article first appeared in <a href="https://www.caixinglobal.com/2024-04-05/danish-biotech-giant-genmab-to-acquire-profoundbio-for-18-billion-102183150.html">Caixin Global</a>.

The deal will give Genmab worldwide rights to ProfoundBio’s portfolio of next-generation antibody-drug conjugates (ADCs).

Danish biotech giant Genmab to buy Lilly Asia-backed ProfoundBio for $1.8b

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Danish biotech giant Genmab to buy Lilly Asia-backed ProfoundBio for $1.8b

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