Issue #98·

Regeneron doubles a $2B bet most of biotech had written off

A big pharma company just walked back to a table that everyone else had abandoned, doubling its check to $4 billion. Meanwhile, the RNAi king admitted it needs an AI co-pilot, Germany scared off $2 billion in pharma investment with a single reform bill, and China's biotech sector stopped being a sideshow at ASCO and started running the main stage.

Top Story Today

Regeneron Walked Back to a Deal Everyone Else Abandoned. Then Doubled It.

While AbbVie and others were dropping CytomX's masked-antibody platform like a bad habit, Regeneron went the other direction: it expanded their collaboration with $37 million in fresh cash, bringing the total deal to roughly $4 billion. Regeneron nominated two new oncology targets and secured options for six more, all built around CytomX's Probody technology, which puts a molecular muzzle on cancer drugs so they stay quiet in healthy tissue and only activate inside tumors. It's a massive vote of confidence in conditional activation as the key to cracking bispecific antibodies in solid tumors.

Why it matters: The deal signals that conditional activation (keeping powerful cancer drugs switched off until they reach the tumor) may be the missing piece for bispecific antibodies in solid tumors, where toxicity has been the primary roadblock to blockbuster success.

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Deals and AI

The RNAi King Just Admitted It Needs an AI Co-Pilot

Alnylam, the undisputed leader in RNAi with six approved drugs and $5 billion in guided revenue, signed a deal worth up to $2 billion with Inceptive, an AI startup co-founded by one of the authors of the transformer paper behind ChatGPT. The upfront is just $30 million, essentially a call option. The goal: use AI to optimize RNA-based drug design, accelerating Alnylam's next generation of siRNA molecules.

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Policy and Investment

Germany Just Lost $2 Billion in Pharma Investment. It Asked For It.

Eli Lilly and Boehringer Ingelheim each slashed over one billion euros from German investment plans in the same week, citing a sweeping healthcare reform bill that caps statutory health-insurance spending and tightens drug reimbursement rules. Lilly halved investment in its new manufacturing facility; Boehringer pulled nearly 900 million euros from its home turf. Combined, that's over two billion euros of capital now looking for a friendlier address, likely in the U.S.

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Clinical Wins and China's Rise

Innovent's $1.2B Bet on a Stomach Cancer Drug Just Cleared a Major Hurdle

Innovent posted a Phase 3 win for a CLDN18.2-targeting ADC in gastric cancer, validating the $1.2 billion upfront that Takeda paid last year. China's drug regulator has already accepted the approval application. In a crowded field chasing the same target, being first to a pivotal readout is a serious advantage.

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ASCO 2026: The Year China Stopped Following and Started Leading

For the first time ever, a trial run entirely in China earned one of ASCO's five coveted plenary slots. Akeso's ivonescimab posted a 34% reduction in death risk in lung cancer, while Merck's post-Keytruda anchor drug was invented in a Sichuan lab. Chinese biotechs made a strong showing among ASCO 2026's late-breaking abstracts, cementing a structural shift in global oncology.

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Cell Therapy Watch

The Autoimmune CAR-T Race Has a New Mantra: Make It Last

Cabaletta Bio presented EULAR data showing 83% of dermatomyositis patients hit a key endpoint at week 16, with all responders maintaining drug-free remission for up to 1.5 years. In a field crowded with CD19 CAR-T competitors, Cabaletta is betting the winner won't be whoever gets to market first, but whoever keeps patients off medications the longest.

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