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Four life science investors are pouring $400 million into a new biotech startup that has licensed a portfolio of weight loss drugs from Chinese pharmaceutical company Jiangsu Hengrui Pharmaceuticals, according to a report. Disclosure information posted on the Shanghai Stock Exchange Thursday.
The newly formed company, now called “Hercules CM NewCo,” was incorporated this month with support from Bain Capital Life Sciences, RTW Investments, Atlas Venture, and Lyra Capital. The company received an up-front and short-term payment of $110 million and a roughly 20% equity stake in exchange for licensing three drug candidates from Hengrui, according to the filing.
According to the filing, the company could owe Hengrui up to an additional $200 million if it achieves certain clinical and regulatory milestones, and if the drug is approved and certain cumulative If the company meets sales standards, it could incur up to $5.7 billion in debt.
Hercules’ most advanced drug, called HRS-7535, is an oral “incretin.” Phase 2 testing Common in people with type 2 diabetes and obesity. The drug, like Novo Nordisk’s fast-selling injectable Wegovy and several experimental drugs being tested by Novo, Eli Lilly and other companies, stimulates her gut hormone called GLP-1. Masu.
The second candidate, HRS-9531, is multiple midfield the study in diabetes and obesity. This drug acts on the hormones GLP-1 and GIP, the same targets as Eli Lilly’s Her Zepbound. Other developers, including Roche and Viking Therapeutics, are testing similar treatments. Hengrui’s medicines are developed as weekly injections and tablets.
A third treatment, codenamed HRS-4729, is in preclinical development.
The disclosure does not say who will lead Hercules or serve on its board of directors. RTW declined to comment, while Bain Capital, Atlas, Lyra, and Henrui did not respond to requests for comment from BioPharma Dive.
However, the filing shows Hercules’ ownership structure. Bain invested $225 million and acquired a 39% stake in the company. RTW owns just over 19% of him due to his $110 million investment. Atlas offered $50 million in exchange for just under 9% of Hercules, and Lyra invested $15 million for a roughly 3% stake.
The arrival of Hercules is the latest example of significant investment being poured into what has become one of the most competitive areas of pharmaceutical research. Novo and Lilly are the major players, drugs are already on the market, and multiple follow-on treatments are progressing through trials.
a large group of pharmaceutical companies However, competitors are also making progress. amgen, Rocheand boehringer ingelheim Medicines have been closely monitored in clinical trials.The same goes for listed biotechs. viking and structural therapy. Several start-up companies have joined the including metsawhich raised $290 million in funding last month.
Meanwhile, Henrui was also involved in biotech, which was recently backed by Atlas and Bain Capital.called Aeolus Bioobtained a license from Hengrui for an asthma treatment, which became a highlight. $1 billion acquisition from GSK In January.
