Takeda builds in cancer with monster $11.4bn Innovent deal

Takeda has partnered with China's Innovent Biologics for a pair of late-stage cancer therapies, in a deal that includes an upfront payment of $1.2 billion and could be worth up to $11.4 billion.

The two candidates are IBI363, a potentially first-in-class bispecific antibody targeting PD-1 and IL-2 alpha, and IBI343, an antibody-drug conjugate (ADC) targeting claudin 18.2. Takeda also gets an option on a third candidate, a bispecific ADC targeting EGFR and B7H3 codenamed IBI3001.

The partnership is yet another signal of the emergence of China as a major source of new medicines, particularly for cancer, and the willingness of established pharma groups to pay large sums to license them. Last year, there were 40 alliances with China with a total value of $31.5 billion, while in the first quarter of 2025 alone, the haul reached a value of $18 billion from 13 deals, according to EY data.

It also plugs a hole in Takeda's oncology portfolio after the Japanese company was forced to withdraw lung cancer therapy Exkivity (mobocertinib) from the market two years ago after failing a confirmatory trial.

Under the terms of the deal, Takeda and Innovent will co-develop IBI363 in all markets, with Takeda taking on 60% of costs and booking 60% of profits or losses in the US. The Japanese firm will also get exclusive commercial rights outside Greater China and the US.

They describe the drug as an "immuno-oncology backbone therapy," taking a brake off the immune system against cancers by inhibiting the PD-1/PD-L1 pathway whilst simultaneously activating the IL-2 pathway in a way that avoids the toxicity seen with other IL-2 drugs. The hope is that it will help to unlock immunotherapy of immunologically 'cold' tumours, which currently resist this type of treatment.

The bispecific antibody is being prepared for a phase 3 trial in China as a second-line treatment for squamous non-small cell lung cancer (NSCLC), and has claimed breakthrough designations in China and the US for that indication. Takeda and Innovent are targeting NSCLC and colorectal cancer as the drug's lead indications internationally, including as a frontline treatment.

With IBI343, the partners are treading a more established route, given that an antibody-based therapy targeting claudin 18.2 – Astellas' Vyloy (zolbetuximab) – has already reached the market as a treatment for gastric and gastroesophageal cancers.

Takeda and Innovent reckon their ADC could offer a 'best-in-class' profile in the claudin 18.2 category, differentiating it from the fairly large number of candidates coming through the broader industry pipeline, including a "favourable" safety profile.

IBI343 is in a phase 3 trial in China and Japan in gastric and GEJ cancers and has also completed a phase 2 trial in pancreatic cancer, picking up both a breakthrough designation in China and fast-track status in the US as a second-line treatment for pancreatic ductal adenocarcinoma (PDAC), the most common form.

An attempt by Astellas to extend the label of Vyloy to include pancreatic cancer suffered a setback after the drug failed the phase 2 GLEAM study.

Takeda's head of oncology, Teresa Bitetti, said the two drugs "have the potential to address critical treatment gaps for patients with a range of solid tumours" and could be "transformative" for the company's oncology portfolio, enhancing its post-2030 growth.

The upfront payment of $1.2 billion includes a $100 million investment in Hong Kong-listed Innovent.