Local biopharma lands US$1.6B cell therapy pact with Kite

In a landmark deal for China's biopharmaceutical sector, Shenzhen-based Pregene Biopharma has entered into an exclusive licensing agreement with U.S.-based cell therapy leader Kite Pharma, valued at up to US$1.64 billion.

Pregene's R&D and Manufacturing Center in Shenzhen. Courtesy of Pregene

The agreement, announced last week, sets a new benchmark for Shenzhen's biotech industry. Featuring a substantial US$120 million upfront payment to Pregene, with the potential for an additional US$1.52 billion in milestone payments, it represents the largest-ever international partnership of its kind for a Shenzhen-based innovative drug company in both upfront fees and total transaction value.

The collaboration will focus on advancing next-generation in vivo gene editing therapies designed to target hematological and solid tumors. Under the terms of the deal, Pregene will retain development and commercial rights within China, and Kite Pharma will take the lead on development, manufacturing, and commercialization outside China.

Moving beyond traditional "license-out" models, this partnership is characterized by deep, integrated cooperation from the earliest stages of research. This structure underscores the high value international peers place on China's innovative research and development.

"We are thrilled to partner with Kite to advance the development of next-generation in vivo gene editing therapies and help bring them to patients sooner," said Zhang Jishuai, co-founder and chief scientist of Pregene.

"This collaboration is designed to fully leverage Kite's global leadership in cell therapy alongside our unique technological strengths. Our goal is to overcome key technological barriers, accelerate proof-of-concept studies, and deliver breakthrough therapies more rapidly to patients in oncology, autoimmune diseases, and other areas with urgent, unmet needs."

Pregene is headquartered in Pingshan District, a rapidly growing center for the biopharma industry. The district hosts a cluster of over 1,300 biopharmaceutical companies that collectively generate an annual industrial output exceeding 100 billion yuan (US$14 billion).

The district's National Biological Industry Base has attracted major international players like Sanofi Pasteur and is home to leading Chinese pharmaceutical firms, including Shenzhen Chipscreen Biosciences Co. and Fosun Hanlin (Shenzhen) Biotechnology Co.