On October 22, INNOVENT BIO (01801) shares opened nearly 10% higher, reaching a peak of HK$95.5, with trading volume exceeding 40 million shares and turnover surpassing HK$4 billion. The bullish market sentiment stemmed from a significant pre-market announcement by the company: INNOVENT BIO has entered into a groundbreaking BD deal with Takeda Pharmaceutical worth a total of $11.4 billion, featuring “high upfront payment, high milestones, and high revenue sharing.” According to Zhitong Finance APP, this strategic cooperation involves the global development of the next-generation IO cornerstone therapy IBI363 (PD-1/IL-2α-bias) in collaboration with Takeda, as well as joint commercialization in the U.S. Additionally, INNOVENT BIO will grant Takeda commercialization rights in specific global regions for two late-stage therapies, IBI363 and IBI343, along with exclusive options in certain areas for an early-stage project, IBI3001. Under the agreement, INNOVENT BIO will receive a $1.2 billion upfront payment (including $100 million in premium strategic equity investment) and potential milestone payments. The company will also receive a high sales share, possibly reaching double digits, and will share the profits from the joint commercialization of IBI363 with Takeda at a 40/60 split in the U.S. Notably, regarding the focal product IBI363, both parties will share the development and profit risks in the U.S. market. This partnership not only sets a new record for external collaborations among domestic pharmaceutical firms but also marks the first time a local pipeline engages in “global co-research” with a multinational giant to penetrate the billion-dollar oncology market. The robust collaboration showcases a new model of partnership between domestic innovative drug companies and multinational enterprises, characterized by global co-research as opposed to traditional BD deals. Firstly, the transaction involves a suite of promising products rather than a single blockbuster, indicating Takeda's substantial recognition and commitment to INNOVENT BIO's overall technological platform. Secondly, the cooperative model entails joint development and profit-sharing for the core product IBI363 in the U.S. Typically, while such models can involve complex transactional structures, they often lead to an evolving and adaptable collaboration system, enhancing the practicality and success rate of the partnership. Additionally, per the agreement, Takeda will invest $100 million at a 20% premium to acquire equity in INNOVENT BIO, becoming a key strategic shareholder, fostering a “global business interest community” that contributes to the stability of both parties’ long-term collaboration. Launching a New Era in International Commercialization The partnership between INNOVENT BIO and Takeda, especially the global development and commercialization of IBI363, is undoubtedly the centerpiece of the collaboration. Its potential has been substantiated by important clinical results, revealing significant ongoing value. Takeda, among the world’s top 15 pharmaceutical companies, has recently faced hurdles in the oncology sector due to a lack of blockbusters. As a focus product in this partnership, IBI363 aligns perfectly with Takeda’s need to upgrade its oncology strategy. Developed independently by INNOVENT BIO, IBI363 is the world’s first bispecific antibody fusion protein, innovatively blocking both the PD-1/PD-L1 pathway while activating the IL-2 pathway, achieving dual immune activation. Furthermore, its PD-1 binding arm not only blocks the PD-1 checkpoint but also selectively delivers IL-2 to T cells that co-express PD-1 and IL-2α, precisely activating and expanding the body’s anti-cancer “elite force.” Data presented at this year’s ASCO annual meeting indicates that IBI363 shows promising clinical activity in challenging malignancies, including immune-resistant lung cancer, acral melanoma, mucosal melanoma, and microsatellite stable colorectal cancer. This suggests it can cover a $50 billion market base, addressing the core challenges of resistance to existing PD-1 therapies. Moreover, IBI363's anti-tumor activity is unaffected by PD-L1 expression levels, indicating potential efficacy against “cold tumors” with low or absent PD-L1, such as pancreatic and liver cancers, thereby addressing a major pain point in current immunotherapy. These advantages undoubtedly increase IBI363’s appeal to Takeda. The details of this “high upfront, high milestone, high revenue-sharing” BD deal reflect Takeda's assertive commitment and confidence in the overseas marketability and future sales of IBI363. For INNOVENT BIO, this potential influx of $11.4 billion provides substantial funding security for large-scale global clinical trials. Collaboration with Takeda will facilitate the smooth progression of key products like IBI363 through clinical phases, reducing research and development risks and shortening the development cycle. Moreover, leveraging Takeda’s extensive global registration, clinical development, and commercialization network can help bring INNOVENT's innovative products to major markets in Europe and North America more swiftly, paving the way for future pipeline launches. Additionally, this partnership demonstrates international counterparts' high regard for the innovative technology platform developed by INNOVENT BIO. The backing from Takeda is expected to boost company stock prices, reduce the capital turnover cycle for investors, and enhance their willingness and confidence to invest, laying a solid foundation for long-term holdings in INNOVENT BIO.