Page 199 - CW E-Magazine (10-10-2023)

Special Report Special Report

 Machinery and mechanical appli- Table 3: Comparison of Japan’s relationship with India and China Partnering & drug development: Top 10 deals
ances (HS-84); Japan-India Japan –China Ratio
 Optical, photographic equipment No. of Japanese visitors About 2,10,000 About 2.5-mn 1/12 thus far in 2023
(HS-90); No. of tourists to Japan About 103,000 About 2.5-mn 1/48
 Pharmaceutical products (HS-30); No. of foreign students in Japan 1,102 108,331 1/98
 Vehicles, other than railway or No. of Japanese residents 8,655 131,161 1/15 hat are the top 10 drug-deve-  Sobi’s $1.7-bn acquisition of CTI PATRICIA VAN ARNUM
tramway (HS-87); No. of registered residents in Japan 28,047 785,982 1/28 lopment deals (mergers and Biopharma. Editorial Director
 Plastics and its articles (HS-39); No. of Japanese language students About 20,000 About 1.05-mn 1/52 Wacquisitions) between the Drug, Chemical & Associated
 Articles of apparel and clothing acces- Exchange between local governments 13 382 1/28 large bio/pharmaceutical companies Details of those deals are outlined
sories, knitted or crocheted (HS-61); No. of fl ights 28/week 690/week 1/25 and smaller companies thus far in below. Technologies Association,Inc. (DCAT)
 Articles of apparel and clothing No. of restaurants – 108,000 2023? Which smaller companies have
accessories, not knitted or crocheted Table 4: India, Thailand & Japan – Around 2,783 foreign companies hav- been the targets of large companies and Pfi zer’s pending $43-bn acquisition of pipelines and to use Pfi zer’s protein
(HS-62); a comparison ing registered offi ces in India closed in what product areas? Seagen engineering and medicinal chemistry
 Aluminium and its articles (HS-76); India Thailand Japan operations between 2014 and Novem- Pfi zer’s pending $43-bn acquisi- capabilities to advance Seagen’s ADC
 Articles of iron and steel (HS-73); and Area 3.3 0.5 0.38 ber 2021, as per a reply given by Shri Overall deal value (mergers and tion of Seagen, a Bothell, Washington- technology for potential new target
 Iron and steel (HS-72). [mn sq.km] Piyush Goyal in Parliament (https:// acquisitions) totalled $214.3-bn in the based bio/pharmaceutical company combinations and new biologics. Seagen
Population 1,300 70 12.6 www.deccanherald.com/business/ bio/pharmaceutical and life science specializing in antibody-drug conju- is also advancing technologies capa-
While the Indian pharma industry [mn] business-news/why-mncs-are-quitting- industry in the fi rst half of 2023, gates (ADCs) and drugs for oncology, ble of potentially generating multi-
is strong and exported medicines worth Japanese 9,200 83,000 india-1119422.html). This is not a according to a recent analysis by PwC is the largest acquisition announced ple investigational new drug applica-
$5.8-bn in 2018-19, to Japan the fi gure expatriates small number, considering there are and Capital Q, which represented a 3% to date in 2023 in the bio/pharmaceu- tions, including new linker/payload
was only $0.18-bn. India has about 1% Japanese 1,500 5,900 only 12,458 active foreign subsidiaries decline in deal value year over year tical company. The deal, announced technologies for ADCs and other anti-
share of Japan’s import for ferro alloys, companies operating in India. (as of May 15, 2023, compared to in March 2023, is currently under re- body platforms that directly engage the
steel forgings, and stainless steel house- In Japan, the average tariff on pro- May 15, 2022). The number of deals view by US and European regulatory immune system to destroy tumours,
ware products. At $795-bn, Japan is the ducts of export interest to India are 7%, One of the major reason for this in the fi rst half of 2023 was 231, down authorities. The deal is expected to be such as bispecifi c antibodies.
world’s seventh largest importer of engi- which is higher than the simple aver- state-of-affairs is the regulatory frame- 29% year over year. completed in late 2023 or early 2024,
neering goods, but India has only 0.5% age (4%) of tariff of the country as a work created by archaic government subject to the fulfi lment of customary At the time of the merger announce-
share in these imports. While China’s ex- whole. This is despite CEPA. Tariffs on rules, the long delays for permissions What have been the key deals thus closing conditions, including receipt of ment in March 2023, Seagen said it
ports to Japan was valued at $183.4-bn products of Indian interest for exports and high tariffs, stifl ing bureaucracy far in 2023? required regulatory approvals. expects to generate approximately
(despite a love-hate relationship between to Japan like dairy products, cereals & and corruption, tax issues including in $2.2-bn of revenue in 2023, represent-
the two countries), India’s is only $6.35-bn, preparations, rice, leather and footwear matters related to transfer pricing, infra- The top 10 mergers and acquisitions Seagen’s portfolio includes four ing 12% year-over-year growth, from
much lower than Malaysia ($24-bn) and are very high. Thus, in the subsequent structural problems, and diffi culties in (closed and announced deals) by the approved medicines that are indicated its four in-line medicines, royalties, and
Singapore ($16.5-bn). CEPA review negotiations, India could land acquisition. The worst are tax laws large bio/pharmaceutical companies across solid tumours and hematologic collaboration and license agreements.
possibly seek for tariffs reduction in with retrospective effect provisions. include: malignancies, including three ADCs: When combining the expected growth
Reviewing the India-Japan CEPA these product categories.  Pfi zer’s pending $43-bn acquisition Adcetris (brentuximab vedotin), Padcev trajectories for these medicines with
If India’s exports to Japan are to Is India waking up at last? of Seagen; (enfortumab vedotin), and Tivdak candidates that could emerge from Sea-
improve, there are some CEPA-related Emerging opportunities There are positive signs that things  Merck & Co.’s $10.8-bn acqui- (tisotumab vedotin). The company also gen’s pipeline, subject to clinical trial
issues that need to be sorted out. The In the recent past, the romance of are changing. As per a recent Bloomberg sition of Prometheus Biosciences; commercializes Tukysa (tucatinib), and regulatory success, Pfi zer said at
agreement envisages eliminating tariff the much of the world with China has report, the Centre is creating a digital  Biogen’s pending $7.3-bn acqui- which was approved earlier this year the time of the merger announcement
on 90% of the Japanese exports to received a shock, and many compa- platform that combines 16 ministries, sition of Reata Pharmaceuticals; (January 2023) for treating certain that it believes Seagen could contribute
India, including on electronic appliances, nies, including Japanese ones, are keen with the objective of snatching $1.2-  Astellas’ $5.9-bn acquisition of types of colorectal cancer in combina- more than $10-bn in risk-adjusted reve-
and on 97% of imports from India. to adopt a ‘China+1’ policy to de-risk trillion worth factories exiting China. Iveric Bio; tion with trastuzumab. Clinical deve- nues in 2030, with potential signifi cant
Indian exports to Japan are presently businesses. Several are looking for an But unless States are also made part of  Novartis’ pending $3.5-bn acqui- lopment programmes are ongoing for growth beyond 2030.
affected by a number of issues, which alternative to China, and the Japanese the scheme, the plan will not deliver sition of Chinook Therapeutics; each of these medicines for potential
include both tariff barriers, and non- Government is giving compensation expected results since majority of hur-  Sanofi ’s $2.9-bn acquisition of new tumour types or expanded indica- Merck & Co.’s $10.8-bn acquisition of
tariff barriers (NTBs) like Technical to them for doing so. Many are eye- dles are at the State level. It is up to India Provention Bio; tions in earlier lines of therapy, with Prometheus Biosciences
Barriers to Trade (TBT) and Sanitary ing opportunities in Vietnam, Thailand, to seize the moment and develop excel-  Lilly’s pending $2.4-bn acquisition catalysts expected annually through In June 2023, Merck & Co. com-
and Phytosanitary Measures (SPS). Indonesia, Philippines, etc., but India lent bilateral business relationship with of DICE Therapeutics; 2027. pleted its $10.8-bn acquisition of Pro-
India faces NTBs in sectors like doesn’t fi gure to any signifi cant extent. countries and companies wanting to enter  GlaxoSmithKline’s $2.0-bn acqui- metheus Biosciences, a San Diego,
pharmaceuticals, as there is a require- the country. There are solutions available sition of Bellus Health; The proposed acquisition is ex- California-based bio/pharmaceutical
ment to partner with Japanese enterprises/ In fact, the record of foreign compa- for all the diffi culties that foreign inves-  Lilly’s pending $1.9-bn acquisition pected to enable combination poten- company. The acquisition was an-
trading houses for local marketing. nies in India hardly inspires confi dence. tors face. What is needed is strong will! of Versanis Bio; and tial across both Seagen’s and Pfi zer’s nounced in April 2023.

198 Chemical Weekly October 10, 2023 Chemical Weekly October 10, 2023 199

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