Asian Biopharmas Shine at ESMO, While Licensing Deals Dominate Industry Landscape

In a week marked by groundbreaking clinical trial results and multi-billion dollar licensing agreements, Asian biopharma companies have taken center stage in the global pharmaceutical industry. The European Society for Medical Oncology (ESMO) congress showcased impressive data from several Asian firms, while a flurry of high-value licensing deals underscored the growing importance of cross-border collaborations in drug development.

ESMO Highlights: Asian Biopharmas Make Their Mark

At the ESMO congress, several Asian pharmaceutical companies presented promising clinical trial results, demonstrating their increasing influence in oncology research. Merck's partner, China's Kelun-Biotech, reported significant successes with their antibody-drug conjugate (ADC) sacituzumab tirumotecan (sac-TMT) in both lung and breast cancer trials. The positive outcomes have bolstered Merck's optimism about the candidate, with Marjorie Green, M.D., Merck's senior vice president and head of oncology global clinical development, expressing enthusiasm for its potential.

In another notable presentation, Akeso and its U.S. partner Summit Therapeutics revealed groundbreaking data for their PD-1xVEGF bispecific antibody, ivonescimab. The drug demonstrated superior efficacy in delaying tumor progression compared to a PD-1 inhibitor when combined with chemotherapy in first-line non-small cell lung cancer (NSCLC) treatment. Although the study was limited to China, these results mark a significant milestone in the development of novel cancer therapies.

Licensing Deals: A New Era of Global Collaboration

The pharmaceutical industry witnessed a surge in high-value licensing agreements, with Asian companies playing pivotal roles. Takeda's partnership with Innovent Biologics stood out, with the Japanese pharma giant committing $1.2 billion upfront and offering over $10 billion in potential milestones for two cancer assets. This deal not only highlights Takeda's strategic focus on oncology but also underscores the value placed on innovative therapies emerging from Chinese biotechs.

Roche also made significant moves, agreeing to pay up to $1.45 billion for rights to Hansoh's experimental CDH17-targeted ADC outside of China. Meanwhile, Gilead's Kite Pharma demonstrated its interest in in vivo CAR-T technology by entering into an agreement worth up to $1.6 billion with China's Pregene.

These deals come at a time of geopolitical tensions, prompting industry leaders like Nkarta CEO Paul Hastings to caution against potential government crackdowns on U.S.-China biotech collaborations. Hastings emphasized the critical role these partnerships play in driving innovation within the U.S. biopharma sector.

Market Challenges and Opportunities

While Asian biopharmas celebrate their successes, challenges persist in certain markets. Roche reported continued pricing pressures in China, with its diagnostics sales in the country declining by 27% year-to-date. However, the company's global diagnostics division still managed to achieve 1% sales growth in the first nine months of 2025, highlighting the importance of diversified market strategies.

As the pharmaceutical landscape evolves, companies are adapting their approaches to drug development and commercialization. The increasing number of cross-border collaborations and the strong showing of Asian firms at major conferences like ESMO suggest a shift towards a more globally integrated pharmaceutical industry, where innovation knows no borders.