Sino Biopharma acquires Lanova in rare China-China takeout

The week’s lone M&A deal stood out not just for its nearly $1 billion size, but because it marked a seldom-seen move: a domestic pharma acquiring a homegrown innovator in China’s maturing biotech ecosystem.

On Tuesday, Sino Biopharmaceutical Ltd. (HKEX:1177) announced that it would acquire privately held Lanova Medicines Ltd. for $950.9 million. The deal gives Sino Biopharma ownership of eight clinical programs, two of which have been out-licensed to Western pharmas: LM-305, an ADC targeting GPRC5D that Astrazeneca plc (LSE:AZN; NASDAQ:AZN) licensed in May 2023 for $55 million up front; and LM-299, a bispecific PD-1 x VEGF inhibitor that Merck & Co. Inc. (NYSE:MRK) acquired rights to last November for $588 million up front...