Akeso's Rise Signals China's Biotech Boom and Global Ambitions

Akeso, a Chinese biotech company founded just 13 years ago with a modest $3 million investment, has emerged as a symbol of China's rapidly evolving pharmaceutical landscape. The company's journey from a small team of researchers to a $15 billion industry powerhouse underscores the dramatic transformation of China's biotech sector and its growing influence on the global stage.

From Humble Beginnings to Global Recognition

When CEO Michelle Xia and her co-founders established Akeso in 2012, China's biopharmaceutical industry was in its infancy, dominated by generic drug manufacturers. The lack of a mature ecosystem for innovation posed significant challenges for the fledgling company.

"When Akeso was first established, China's biopharmaceutical industry was still in its infancy," Xia told BioSpace. "To put it simply, very few were engaged in innovative drug discovery at that time; the sector was overwhelmingly dominated by generics. Against this backdrop, pursuing innovative drug development required tremendous effort."

Despite initial skepticism from doctors, investors, and regulators, Akeso persevered. The company's early days were marked by financial constraints, with the team sometimes forgoing salaries to keep operations running.

Breakthrough Partnerships and Pipeline Success

Akeso's global recognition skyrocketed following a landmark partnership with California-based Summit Therapeutics in December 2022. The deal, worth $500 million upfront with potential milestones of up to $5 billion, centered around ivonescimab, a bispecific antibody targeting PD-1 and VEGF pathways in cancer treatment.

Ivonescimab's success in clinical trials, including outperforming Merck's Keytruda in a Phase III study of non-small cell lung cancer (NSCLC), has positioned Akeso as a serious global contender. The drug received approval in China as a first-line treatment for PD-L1-positive NSCLC in April 2023.

Beyond ivonescimab, Akeso has achieved other significant milestones. In June 2023, cadonilimab became the world's first approved cancer immunotherapy bispecific antibody, targeting PD-1 and CTLA-4. The company also secured U.S. approval for penpulimab in April 2023 for the treatment of recurrent or metastatic non-keratinizing nasopharyngeal carcinoma.

China's Biotech Sector: A New Era of Innovation

Akeso's success story is emblematic of the broader transformation in China's biotech industry. Regulatory reforms post-2015 aligned the country's drug development standards with international norms, opening doors for Chinese companies to compete globally.

The sector has also benefited from increased private equity and venture capital investment, although recent years have seen some financial challenges similar to those experienced in the U.S. biotech market.

Xia highlights China's advantages in the global biotech race, including a large patient population for clinical trials, a growing talent pool, and a maturing capital market system. "These elements contribute to rich clinical resources essential for drug development," she explains.

As Akeso continues to expand its pipeline and explore new modalities such as mRNA, siRNA therapies, and cell and gene editing, it exemplifies the ambitious trajectory of China's biotech sector. With its sights set on becoming a "globally influential pharmaceutical innovator," Akeso's journey from a $3 million startup to a multi-billion dollar company mirrors the transformative growth of China's entire biotech industry, signaling a new era of innovation and global competition in pharmaceutical development.