We announced on February 27th that we signed a binding term sheet for Rivoceranib (Apatinib) including China at Advenchen Laboratories.
Thus, royalty from China will be received from Hengrui Medicine, and global royalty from elsewhere will be received from Elevar Therapeutics.
To help your understanding, we would like to discuss the status of the anti-cancer treatment market in China and the development status of Rivoceranib from Hengrui Medicine.
Prospects in the Chinese anti-cancer treatment market and the collaboration with Hengrui Medicine.
Chinese anti-cancer treatment market
According to Frost & Sullivan research from the ICBC report on February 17th,
- the Chinese anti-cancer treatment market has grown at an annual average of 12.8% over the last 4 years (2014~2018) and is expected to grow 12.7% per year by 2030.
- Sales are expected to increase from 24.2 Billion USD in 2018 to 101.6 Billion USD in 2030.
According to an ICBC securities firm report on February 17th, Hengrui Medicine is the number one beneficiary of the Chinese anti-cancer treatment market in the fast-growing anti-cancer treatment market. The main reasons for the high growth of China's anti-cancer treatment market are 1) the aging population and 2) the growth of the targeted chemotherapy/cancer immunotherapy market. In CIC (China Insights Consultancy), targeted chemotherapy and cancer immunotherapy are projected to grow from 19.2% to 54% of the entire market by 2030.
The notable potential of Rivoceranib – a collaboration with Hengrui Medicine
In Hengrui Medicine, clinical phase 3 is in progress with 22 indications as Rivoceranib (see table below).
Also, combination therapy for seven different indications is ongoing, as well as the global first-line phase 3 of the liver cancer (the combination therapy of Camrelizumab and Rivoceranib) (see table below).
In other words, Rivoceranib's current progress is as follows:
1) Clinical phase 3 with 22 indications in China
- Indications: liver cancer, gastric cancer, non-small cell lung cancer, ovarian cancer, gastroesophageal cancer, small cell lung cancer, etc.
- Clinical phase 3 for lung and liver cancer has been completed.
2) Clinical phase 2 or 3 of 7 indications (combo-therapy with Camrelizumab)
- indications for phase 2: sarcoma, non-small cell lung cancer, small cell lung cancer, colorectal cancer, etc.
- indications for phase 3: gastric cancer
3) Global phase 3 of 1st line liver cancer treatment with Elevar (combo-therapy with Camrelizumab).
- 3) has been approved for the global phase 3 in collaboration with Elevar from clinical phase 2 that has been done in China, and there is a good chance that these cases will be added.
-The value of future collaboration with Hengrui Medicine is huge.
-For bio companies, the process of developing new drugs takes time and money. And there is a risk of failure.
- Fortunately, there are a few clinical trials that Hengrui Medicine has spent time and money on for Rivoceranib over the years, many of which are in phase 3, and the results will be extended to our value.
- In addition, we will do our best to ensure that open innovation for global biopharmaceutical companies, Rivoceranib, and our company's potential value expansion leads to continuous results.