Boehringer Bets On External Innovation In Post-COVID China
Executive Summary
From cell therapy to digital health, from fast follower to innovator, China continues to gain traction with global health companies, underscored by its early emergence from the global pandemic and focus on certain technologies, with Boehringer Ingelheim the latest to be attracted.
As China is increasingly seen as an innovator in areas such as immuno-oncology, antibodies and digital health in the post-coronavirus era, more multinational pharma firms are tapping into this pool of expertise as they seek novel solutions.
Boehringer Ingelheim GmbH (BI) is the latest to increase its bet on innovation in China, opening a new External Innovation Hub in Shanghai on 2 July, with a goal to drill into the local novel research ecosystem and develop new breakthrough medicines, including platform technologies, new generation vaccines and/or new biologics such as oncolytic virotherapies, the German company said.
China has over the past few years has built up world-class R&D across several fronts, starting from cell and CAR-T therapies. One of the front-runners in this field, Nanjing Legend of Genscript Biotech Corporation, recently went public on the US Nasdaq market, and seems to be leading the growing pack of developers in China.
The other major front to open up is immuno-oncology, where China now has one of highest participation rates globally in development, noted the Boston Consulting Group in a recent report. Among all novel drug developers in the country, 16% are concentrated on the immunology or immuno-oncology field, trailing only the more traditional sector of anti-infectives with a 17% participation rate.
Increasingly, domestic companies in China are now taking a lead in platform technologies such as novel antibodies, including bi-specific antibodies, and immuno-oncology combination therapies are starting to blossom, noted the BCG report.
BI Moves
Against this backdrop, BI is now increasing its efforts to access external innovation in China, as part of a strategic effort to be present in innovation hot spots globally. bringing together its business leaders for partnering functions and the Boehringer Ingelheim Venture Fund (BIVF), which has €300m ($339m) under management and a portfolio of more than 30 companies and operates as a separate entity.
Vaccines, immuno-oncology and anti-infectives are potential areas of focus for the privately-owned German drug maker under the initiative.
BI recently obtained an additional indication in China for its leading respiratory drug Ofev (nintedanib), for systemic sclerosis associated with intestinal lung diseases, a disfiguring, disabling and potentially fatal rare disease.
Last year, the company also tapped into a booming contract manufacturing sector in China by investing in a large biologics production site and partnering with BeiGene, Ltd. to provide manufacturing services for BeiGene's PD-1 monoclonal antibody tislelizumab.
“BIVF’s focus is to target unprecedented therapeutic concepts addressing high medical needs in immuno-oncology, regenerative medicine, infectious diseases and digital health,” noted BI. The new Shanghai center is headed by Dr Weiyi Zhang.
The hub integrates Boehringer Ingelheim’s external-facing functions, including its Research Beyond Borders global research division, business development and licensing and the BIVF under one roof, to seek investments and collaborations from the early to late stage, the company said.
Digital Health
Apart from these specific areas, China is also a fertile ground for digital health transformation. Impacted by the coronavirus lock-downs, many pharma firms in the country are increasing investment to integrate digital tools into medical education, physician visits and patient outreach, driven by China’s massive mobile internet population and wide adoption of mobile payment technology.
In March, BI announced a plan to open a second branch of its digital lab, BI X, in China, with an initial investment of €3m and creating 20 new positions. Calling the country “one of the epicenters of digital health innovation in the world,” BI's China country managing director Felix Gutsche said external partnerships with Chinese domestic start-ups would be essential to build its new digital lab.
The company already has entered into academic collaborations with China's leading Tsinghua and Peking universities and has entered into four partnerships in South Korea, Singapore and India over the past 12 months.