Sustained Capital Infusion and Thriving BD Transactions in the Targeted Protein Degradation

Targeted Protein Degradation (TPD) technology, as one of the emerging frontiers in the biopharmaceutical industry, has garnered significant attention. With the continuous maturation and application of this technology, related Business Development (BD) transactions have been heating up, presenting an encouraging market landscape. In recent years, the number of global TPD field BD transactions has shown a year-on-year increase, with biopharmaceutical enterprises and venture capital from various countries actively participating.

BD Transaction and Financing Situation

For Biotech companies, seeking collaboration in the TPD field is crucial for promoting the clinical translation of TPD technology: large pharmaceutical companies leverage their financial advantages to ensure Biotech companies can continuously incubate new varieties on their proprietary technology platforms, sharing the long-term benefits of projects. Recently, numerous well-known domestic and international biopharmaceutical companies and foreign venture capital firms have increased their investment in the targeted protein degradation field. According to incomplete public information statistics, from January 2022 to May 2023, there were over 18 financing events and over 28 BD transaction events globally, involving more than 13 billion USD; financing rounds ranged from Seed to Series E.

Figure 1: BD Transaction and Financing Summary (January 2022-May

Figure 2: BD Transaction Volume (January 2022-May

Figure 3: Financing Round Distribution (January 2022-May 2023)

Notably, some large pharmaceutical companies have begun to accelerate the construction of their independent R&D platforms, introducing new technologies, including TPD, and striving to commercialize them. In addition, companies of various sizes and stages continue to delve into TPD technology, involving multiple fields and directions, creating an interconnected ecosystem.

Table 1: BD Transaction Cases

Table 2: Corporate Financing Events

2.Field Expansion and Cross-Application

In TPD-related BD transactions, the fields involved have gradually expanded, extending from traditional oncology to immunology, metabolic diseases, gene therapy, and even artificial intelligence, agriculture, and other fields. The expansion of these research fields has broadened the direction of TPD technology R&D, interdisciplinary integration has expanded the boundaries of TPD technology, and has also provided more and better options for later drug treatments.

Figure 4: Interdisciplinary and Multi-Field Intersection

3.Diversified Transaction Models and Exploration of Possibilities

In the field of targeted protein degradation, as the technology continues to mature and market demands change, transaction models have become increasingly diversified and flexible. Many transactions in the past were usually conducted in the form of licensing agreements or acquisitions to quickly obtain key technologies or take the lead in the industry. In recent years, the joint development transaction model has been highly regarded, ensuring that all parties can fully share resources, share risks and responsibilities, and enhance partnership, providing more opportunities and possibilities for future cooperation.

4.From Chinese-style Following to Chinese-style Innovation

As one of the important directions of new drug research, the research and application of TPD technology are also increasingly valued and promoted in China, and the research and application are in the stage of catching up and development. Some domestic enterprises and research institutions have made preliminary progress in this field, strengthened domestic and international cooperation, improved the level of domestic TPD field research and international competitiveness; at the same time, some enterprises' products have been successfully licensed out and recognized by domestic and foreign pharmaceutical companies and capital.

Figure 5: Comparison of Chinese and International BD Transactions and Financing (January 2022-May 2023)

Conclusion

Although the development of targeted protein degradation technology is rapid, there are some technical difficulties and risk issues that need to be overcome, such as how to solve the specificity and efficiency in protein degradation. With further research, we look forward to seeing more innovation and breakthroughs in the diversification of degradation mechanisms, the diversification of market demands, and other aspects, and to provide new treatment options for diseases such as cancer and autoimmune diseases as soon as possible.