In a deal that could reach nearly $2 billion, Jiangsu Hengrui Pharmaceuticals Co. Ltd. has licensed a small molecule for treating cardiovascular disease to Merck & Co. Inc. Hengrui is bringing in a $200 million up-front payment and could tally milestones of up to $1.77 billion, plus royalties on net sales. In return, Merck gets the exclusive rights to develop, manufacture and commercialize the oral lipoprotein inhibitor everywhere in the world but the greater China region. HRS-5346 is in a phase II study in China. Hengrui filed for an IPO on the Hong Kong Stock Exchange in January.

Hillstar launches with $67M series A to target TRBV9+ T cells in axial spondyloarthritis

Hillstar came out of stealth mode today, announcing a $67 million series A financing round led by investors and shareholders, including Droia Ventures, Frazier Life Sciences, Novo Holdings A/S, Lifearc Ventures and Hummingbird Bioscience. The company has developed an antibody targeting T-cell receptor beta variable 9 (TRBV9) in the hopes of stopping T cells expressing TRBV9 from interacting with white blood cells expressing human leukocyte antigen-B27 (HLA-B27) in patients with axial spondyloarthritis and potentially other immune and inflammatory conditions associated with HLA-B27.

Mural Oncology sinks on nemvaleukin miss in ovarian cancer

Losing 60% of its value in early trading March 25, Mural Oncology plc backed away from development of its lead IL-2 drug, nemvaleukin alfa, in platinum-resistant ovarian cancer based on interim results showing it failed to reach significance in the overall survival (OS) primary endpoint. The company said it would not continue to a final analysis as the Artistry-7 phase III study was “highly unlikely to achieve success.” The trial evaluated nemvaleukin in combination with Merck & Co. Inc.’s anti-PD-1 therapy, Keytruda (pembrolizumab), vs. investigator’s choice chemotherapy in patients with platinum-resistant epithelial ovarian, fallopian tube or primary peritoneal cancer. Patients treated with nemvaleukin and pembrolizumab had a median OS of 10.1 months vs. 9.8 months with investigator’s choice chemotherapy. Mural’s shares (NASDAQ:MURA) were trading at $1.54, down $2.30.

Report shows increased pharma innovation despite rising R&D costs

The obesity market is driving pharma’s return on investment (ROI) upward, with the projected return rising to 5.9% overall in 2024, but only reaching 3.8% if GLP-1 assets are excluded. At the same time, the average cost of developing a drug continues to rise and now stands at $2.23 billion, compared to $2.12 billion in 2023, according to Deloitte’s 15th annual analysis of the ROI from pharmaceutical innovation. The projected ROI of 5.9% from the late-stage assets in the pipelines of the top 20 biopharma companies follows an increase to 4.1% in 2023, and marks a sustained recovery from the record low of 1.2% in 2022.

Nature Cell wins FDA breakthrough designation of Jointstem

Nature Cell Co. Ltd. won U.S. FDA breakthrough therapy designation of its autologous adipose-derived mesenchymal stem cell therapy, Jointstem, March 20, becoming the first Korean company to earn the label in the field of cell therapy. Jointstem, developed by affiliate Rbio Co. Ltd. and owned by Nature Cell, is described as the world’s first autologous adipose-mesenchymal stem cell therapy specifically indicated for patients with severe knee osteoarthritis, classified by Kellgren-Lawrence grade 3 and higher.

PhRMA takes aim at most of world for unfair trade practices

In a move that echoes tariff threats from U.S. President Donald Trump, the Pharmaceutical Research and Manufacturers of America (PhRMA) lobby is taking aim at most of the world for unfair trade practices in its special 2025 Special 301 Report to the U.S. Trade Representative.

Oz hits Wyden’s wall of skepticism in Senate hearing for CMS post

Mehmet Oz, the Trump administration’s pick to lead the U.S. Centers for Medicare & Medicaid Services, appeared for a second time in the Senate for the CMS administrator’s job, but Senate Finance Committee ranking member Ron Wyden (D-Ore.) was less than enthused. Wyden blasted Oz’s history of marketing activities for Medicare Advantage plans, and said he could not vote for Oz, although the committee vote did not take place during the brief morning hearing.

Checkpoint inhibitor journey traces Chinese firms’ path to global revenue

Chinese pharmaceutical companies are making significant inroads into the global oncology market, particularly with the development and approval of immune checkpoint inhibitors (ICIs). These treatments, which have shown strong efficacy in various cancer indications, are not only transforming the oncology landscape in China but are also gaining traction in high-value international markets, including the U.S. BioWorld takes a look at the journey of Chinese ICIs in the U.S. market, a story of triumphs, challenges and valuable lessons.

Also in the news

23andme, Abbvie, Akeso, Alligator, Aura, Biogen, Byondis, Cel-Sci, CG Oncology, Cstone, Cyclacel, Editas Medicine, Genmab, Geovax, GSK, Harmony, Junshi, Mira, Nature Cell, Opthea, Pathios, Ractigen, Skye, Sungen, Sunshine, Surrozen, Tempero, Transcode, Tonix, UNITY, Valneva, Vicero