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British pharma giant AstraZeneca, known for its cancer therapies Lynparza and Enhertu, among others, has signed deals on a number of research and development (R&D) projects across the globe. This past month, it has vowed to spend over $10 billion in Asia, particularly in China, to build Beijing into an R&D hub. However, this comes as the company’s image is being tarnished over fraud and alleged smuggling scandals.
AstraZeneca signs a deal with Harbour BioMed and Syneron Bio for platform technologies
The drugmaker collaborated with Chinese biotech Harbour BioMed to gain an option to license multiple programs derived from the latter’s Harbour Mice fully human antibody technology platform. The platform creates heavy chain antibodies – around half the size of a typical IgG, the most common type of antibody.
AstraZeneca will pay $175 million in upfront and near-term payments and is expected to shell out up to $4.4 billion in development and commercial milestone payments. While much was not revealed about the deal, AstraZeneca will get a hold of two preclinical immunology programs and can nominate further targets for the Chinese biotech to discover next-generation multi-specific antibodies in a bid to “accelerate the creation of transformative therapies for patients with high unmet medical needs,” according to Jingsong Wang, Harbour’s chief executive officer (CEO).
Another significant deal AstraZeneca penned in the past week is with Syneron Bio, a macrocyclic peptide company located in Beijing. Syneron is set to pocket $75 million in upfront and near-term payments as well as development and commercial milestones worth up to $3.4 billion. This is in exchange for AstraZeneca gaining access to the startup’s macrocyclic peptide drug research and development platform, which is designed to create drugs that could potentially treat chronic diseases, including rare, autoimmune, and metabolic diseases.
Macrocyclic peptides are peptides – short chains of amino acids, which are building blocks of proteins – that curl into ring-like structures. They combine the advantages of small molecules and biologics, offering improved target specificity and stability.
“We are honored to partner with AstraZeneca. Interest in our Synova platform is incredibly inspiring and driven by the promising research and results we have already delivered. In the face of growing challenges posed by chronic diseases, such as autoimmune and metabolic disorders, this collaboration underscores our commitment to advancing drug development,” said Frank Zhang, founder and CEO of Syneron Bio, in a press release.
AstraZeneca collaborates with BioKangtai and Alteogen
Similarly, it forged ties with BioKangtai to develop, manufacture, and commercialize “innovative” vaccines to address infectious diseases. The deal will see the two set up a vaccine manufacturing facility in Beijing BioPark, the first one established by AstraZeneca in China. The two previously signed a deal to commercialize a COVID-19 vaccine back in 2021. The vaccine in question was a recombinant adenovirus vector-based vaccine branded KconecaVac, and millions of shots were shipped to mainland China, Pakistan, and Indonesia.
Meanwhile, in South Korea, the pharma giant and Alteogen came together in March to develop ALT-B4, a hyaluronidase utilizing Hybrozyme platform technology. The platform allows for the subcutaneous administration of drugs – between skin and muscle for slow and sustained absorption – that are typically given as an intravenous (IV) infusion. Delivering drugs subcutaneously is said to be easier to access, and patients are free of the burden of IV pumps.
AstraZeneca will acquire the worldwide rights to use ALT-B4 to develop and commercialize formulations of several undisclosed cancer drugs, whereas Alteogen will be responsible for the clinical and commercial supply of the technology to AstraZeneca.
“We are dedicated to advancing new medicines for people with cancer, and that includes new methods of delivery, which are more convenient for patients, physicians, and healthcare systems,” said Cristian Massacesi, chief medical officer (CMO) and Oncology chief development officer (CDO) at AstraZeneca, in a press release. “We look forward to collaborating with Alteogen on several assets in our portfolio with the goal of bringing new subcutaneous options to patients that can transform the way cancer care is delivered.”
AstraZeneca seals deals to strengthen R&D presence in Beijing
The three deals in China are part of an elaborate $2.5 billion plan to position AstraZeneca as a key player in China. AstraZeneca has promised to build an R&D center in the Chinese capital, Beijing – its sixth one globally and second in China – to advance life sciences in the region. The money will be doled out over the next five years, as it expects its Beijing workforce to grow to 1,700 employees. The center will advance early-stage research and clinical development as well as host an artificial intelligence (AI) and data science laboratory.
Pascal Soriot, CEO of AstraZeneca, said: “This $2.5 billion investment reflects our belief in the world-class life sciences ecosystem in Beijing, the extensive opportunities that exist for collaboration and access to talent, and our continued commitment to China. Our sixth strategic R&D center will partner with the cutting-edge biology and AI science in Beijing and be a critical part of our global efforts to bring innovative medicines to patients worldwide.”
The drug developer has been in cahoots with the Beijing Municipal Government and the Beijing Economic-Technological Development Area Administrative Office to put its plans into action. But is all this a means to paint itself in a better light amid a fraud probe? Perhaps.
AstraZeneca under fire for fraud; former China president detained
Late last year, AstraZeneca came under intense scrutiny when it was disclosed that the Chinese government was looking into the former China president Leon Wang in an insurance fraud case. Wang was detained by authorities in October, and then the pharma giant placed him on extended leave two months later. Since then, the company has not been able to contact Wang, Soriot had said at a press conference. The company’s share prices dipped by around 7% then.
Several AstraZeneca employees have been implicated in fraud cases in China over the past three years. The most notable was a medical insurance scandal reported in 2021 when the company’s staff faked prescriptions for the targeted non-small cell lung cancer (NSCLC) therapy Tagrisso so that patients could purchase it via insurance in the city of Yibin, according to a report by Chinese media Yicai. Employees were even found to forge genetic test reports to defraud insurance companies.
Another scandal has also plagued the company’s image in China. Two former and current employees have been implicated in a drug smuggling case. AstraZeneca has been accused of illegally importing Imjudo, a cancer drug that has not been approved in mainland China. Imjudo is a human monoclonal antibody that targets the activity of CTLA-4, which is a checkpoint protein that prevents T cells from attacking cancer cells, and is prescribed in combination with other cancer therapies in the U.S. and the European Union.
Similarly, even shipments of the antibody-drug conjugate Enhertu for breast cancer are under investigation. Enhertu was approved in the region in 2023, but sources have claimed that the drug was being smuggled from Hong Kong to China before its approval. Now, the pharma giant stands to pay $4.5 million in fines for missing $900,000 in import taxes.
With a market value estimated to be around £174.80 billion ($226.16 billion), the fine is a mere slap on the wrist for AstraZeneca. But whether news of its R&D plans will overshadow the mounting political pressure on the company in China and even globally, as U.S. President Donald Trump threatens tariffs on pharmas – if they don’t bring their manufacturing operations to the country – is unlikely.
Partnering 2030: Biopharma Report
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