Throwing a license in of US$338 million to understand the "Zai Lab Model" in one article

In 2020, Zai Lab and TP Therapeutics reached an exclusive licensing agreement to obtain the exclusive development and commercialization rights of Repetinib in Greater China (Mainland China, Hong Kong, Macau and Taiwan)
.
According to the terms of the agreement, Zai Lab will pay Turning Point a cash advance of US$25 million, with potential development, registration and sales-based milestone payments up to US$151 million
.

Repetinib is a new generation of tyrosine kinase inhibitor (TKI) under investigation.
It can effectively target ROS1 and TRK A/B/C.
Patients with cell lung cancer have therapeutic potential
.

License in is not a simple product introduction, but by paying a down payment to the "product licensor" and agreeing on milestone fees and future sales commissions
.

Unlike pure pipeline acquisition, the "product introducer" does not need to pay a lot of fees when introducing innovative pipelines, while the "product licensor" is required to obtain milestone fees and the agreed product launches in certain countries (regions) for research and development, production, and production.
The commercialization authority will also cooperate with the "product importer" to jointly develop the pipeline
.

Therefore, the "product introduction party" not only introduces pipelines for its own development, but also can rely on the R&D resources of the "product licensors" to combine the two forces to jointly promote the pipeline
.

At present, Zai Lab has 22 drug candidates in its product pipeline, including 18 products in the clinical development stage, 12 products in the post-clinical development stage, and five products that have been approved in the United States
.
Among them, the pipeline of internally developed products with global rights has increased to seven, and three of them are in the global clinical development stage
.

Regarding the innovative layout of the future R&D pipeline, from the current point of view, the track still insists on patient-oriented product development, which will cover tumor, anti-infection, autoimmunity and other fields
.
Tumor is still the focus of research and development, and will focus on the five major cancer types that account for more than half of the number of new cancer patients in China, including lung cancer, gastric cancer, female cancer, brain tumors and hematological tumors
.

Zai Lab was established in 2014.
Just 3 years later, in 2017, Zai Lab sounded the listing bell and was listed on the Nasdaq in the United States; 3 years later, Zai Lab was listed on the Hong Kong Stock Exchange for the second time.
The current market value has reached 100 billion
.
As the leader of the domestic license in model, Zai Lab allows Zai Lab to quickly introduce the research results of advanced foreign companies, enrich its product pipeline, and enter the harvest period soon
.
But at the same time, the license-in model also puts Zai Lab under heavy cash flow pressure
.

In the first stage, Zai Lab used its unique "Zai Lab Model" to lead the way.
As China's pharmaceutical ecosystem enters the 2.
0 era, how to do commercialization and how to truly implement new drugs has become the top priority of Biotech.

.
As Biotech, one of the few with a market value of 100 billion, how can Zai Lab maintain its competitiveness in terms of commercialization? We will wait and see
.

refer to:

1.
The official website of MiratiTherapeutics;

2.
RubrYc Therapeutics official website;

3.
Zai Lab Prospectus;

4.
Turning Point Therapeutics Reports Updated Interim Data From Registrational Phase 2 Trident-1 Study of Repotrectinib in Patients With ROS1-Positive TKI-Na?ve Non-Small Cell Lung Cancer.