Innovent has announced a global strategic partnership with Takeda on several key oncology assets, including IBI363 (PD-1/IL-2), IBI343 (CLDN18.2 ADC), and potentially IBI3001 (EGFR/B7H3 ADC). This partnership is designed to expand Innovent’s global footprint, while strengthening Takeda's solid tumor pipeline. Under the agreement, Takeda will lead global development of IBI363, with Innovent sharing 40% of the development costs. The two companies will cocommercialize IBI363 in the US, with Innovent retaining 40% of the commercial rights. For IBI343, Takeda will hold global rights outside China. Takeda will also receive an option to license IBI3001 for markets outside China. Innovent will receive a total upfront payment of US$1.2bn, including a US$100mn equity investment at HK$112.56 per share. The deal includes potential milestone payments, bringing the total value to US$11.4bn, plus additional royalties.
A landmark step for Innovent to expand global presence. Innovent aims to evolve into a fully integrated biopharma organization with global R&D and commercial capabilities, targeting the advancement of at least five assets into global Ph3 MRCTs by 2030. Innovent has established a discovery research lab in the US and plans to scale its US R&D team to 100-200 by 2026. While the associated investment is expected to be substantial, we believe the long-term strategic and commercial upside could be considerable if successfully executed. As of Jun 2025, Innovent remained well-capitalized with a cash balance of US$2.1bn, providing a solid financial foundation to support its global ambitions.
To bolster Takeda’s oncology pipeline in the solid tumor space. In fiscal 2024, Takeda reported total revenue of US$30bn, including US$3.7bn from oncology, mainly contributed by solid tumor assets such as leuprorelin (US$0.8bn) and fruquintinib (US$0.3bn), alongside contributions from other hematology products. The partnership with Innovent is expected to bolster Takeda’s oncology pipeline with next-generation immuno-oncology assets. As of Jun 2025, Takeda had a cash balance of US$2.3bn and total debt of US$29.7bn. In fiscal 2024, Takeda recorded free cash flow of US$5.1bn.
IBI363 and IBI343 entering into late-stage global development. IBI363 (PD-1/IL-2) has demonstrated competitive PFS and survival benefit in IOresistant sq- and nsq-NSCLC, as well as encouraging activity in cold tumors such as melanoma and MSS colorectal cancer (CMBI report, link). Innovent is conducting a global Ph3 MRCT for IBI363 in IO-resistant sq-NSCLC across the US and China, and plans to initiate a Ph3 trial in 3L MSS CRC in China in 2H25. The Company is also exploring earlier lines of therapy for IBI363, with Ph1b/2 PoC data in front-line NSCLC and CRC expected in 2026. Meanwhile, IBI343 (CLDN18.2 ADC) has entered Ph3 for 3L+ PDAC in China, in addition to its ongoing Ph3 study in 3L+ gastric cancer in Japan/China. Subject to positive PoC results, Innovent/Takeda also plan to initiate global Ph3 MRCTs in first-line GC and PDAC.
Maintain BUY. We look forward to the further global development of IBI363 and IBI343. To factor in the new partnership, we revise our DCF-based TP from HK$109.48 to HK$110.62 (WACC: 9.5%, terminal growth rate: 4.0%).