Over $1 billion! Frontier Biotech partners with GSK, reigniting the oligonucleotide sector

21st Century Business Herald Reporter Han Liming

The small nucleic acid field welcomes another major BD (business development) deal.

On the evening of February 23, Chuangxin Biological (688221.SH), an innovative drug company listed on the STAR Market, announced that it has reached an exclusive licensing agreement with GlaxoSmithKline (GSK), granting GSK exclusive rights worldwide to develop, produce, and commercialize two of the company’s small nucleic acid (siRNA) pipeline products.

According to the agreement, one candidate drug has entered the IND (Investigational New Drug) application stage, and the other is a preclinical candidate. Chuangxin Biological will be responsible for advancing one product through Phase I clinical trials in China and will complete IND-supporting studies for the other.

As part of the deal, Chuangxin Biological will receive a $40 million upfront payment and a $13 million milestone payment shortly thereafter. The company can earn up to $950 million in total milestone payments based on successful development, regulatory approval, and commercialization, and will also receive tiered royalties on global net sales of the two products.

An industry insider told 21st Century Business Herald that the ongoing global small nucleic acid transactions are heating up. This nearly $1 billion cooperation is expected to improve Chuangxin Biological’s cash flow, support R&D and platform upgrades, and mark an important turning point for the company, which has been continuously loss-making since its IPO in 2020. “However, compared to the certainty of the initial payment, the subsequent milestone payments depend on the smooth progress of product development, regulatory approval, and commercialization, so ongoing monitoring is necessary.”

Buoyed by this positive news, as the first trading day after the Spring Festival holiday, Chuangxin Biological’s stock opened high on February 24. By midday, it was trading at 24.54 yuan per share, up 8.58%, with a total market capitalization of 9.192 billion yuan.

Image source: Chuangxin Biological announcement

Strategic Breakthroughs Amid Continued Losses

Chuangxin Biological was founded in January 2013. In June 2018, its self-developed drug Eke Ning (injectable Abivertinib) was approved by the National Medical Products Administration, becoming the world’s first long-acting HIV-1 fusion inhibitor and China’s first original anti-AIDS drug, as well as the company’s first commercialized product.

In October 2020, Chuangxin Biological listed on the STAR Market of the Shanghai Stock Exchange as China’s “First Anti-AIDS Stock,” with an issue price of 20.5 yuan per share. However, post-listing, the stock price has generally trended downward, underperforming market expectations.

Financially, by the end of 2020, Eke Ning was included in the national medical insurance catalog, leading to increased sales and price reductions. Data shows that in 2021, Eke Ning sold 111,800 units, a 59.75% increase year-over-year. However, due to price cuts, revenue decreased by 13.13% to 40.5029 million yuan, and net profit attributable to the parent was a loss of 260 million yuan, highlighting ongoing profitability pressures.

While core products face pressure, Chuangxin Biological is simultaneously advancing multiple pipeline products, including an anti-COVID-19 candidate FB2001 (generic name: Bofutrelvir), a treatment for musculoskeletal pain FB3001, a long-acting lipid-lowering drug FB6001, and a bisphosphonate product FB4001 (a teriparatide generic). However, according to the 2023 annual report, most pipelines are still in early to Phase II clinical stages, and commercialization is still some way off.

In this context, the small nucleic acid platform has become a key focus for breakthroughs. The company stated in its 2024 annual report that, leveraging the synergy between small nucleic acid drugs and long-acting peptides, it aims to build a pipeline targeting unmet clinical needs such as IgA nephropathy and lipid disorders with significant market growth potential.

Currently, Chuangxin Biological’s small nucleic acid pipeline has a tiered layout. For IgA nephropathy, it has three targeted complement mechanism siRNA drugs: FB7011, FB7013, and FB7014. In lipid disorder treatments, it has siRNA drugs targeting different lipoprotein targets, including FB7023 and FB7022, all in preclinical stages. Several other projects in metabolic fatty liver disease (MASH), Type 2 diabetes (T2DM), and other endocrine areas are also in preclinical research.

Despite ongoing R&D investment, the company’s main revenue sources remain Eke Ning,代理产品Vekarine, and infrared therapy patches. According to its 2025 earnings forecast, the company expects revenue of 140-145 million yuan, an 8.13%-11.99% increase, but net profit attributable to the parent will still be a loss of 255-290 million yuan, with continued losses and no turnaround yet.

Chuangxin Biological stated that the GSK exclusive small nucleic acid licensing deal will help improve cash flow, optimize financial structure, and, with GSK’s global clinical development and commercialization resources, accelerate the internationalization of its pipeline and lay a solid foundation for subsequent product commercialization and global cooperation.

However, industry experts note that while the $40 million upfront payment provides certain cash flow, the subsequent milestone payments of $13 million and up to $950 million depend on the smooth progress of product R&D, regulatory approval, and commercialization, requiring ongoing attention.

Global Giants Bet on China’s Strength to Accelerate Breakthroughs

As the third major drug class after small molecule drugs and antibody drugs, small nucleic acid drugs are sparking a paradigm shift in global medicine. With their unique mechanisms, long-lasting effects, and diverse targets, they offer hope for rare disease patients and show great potential in chronic disease treatment. According to Maximize Market Research, the small nucleic acid therapy market is expected to grow significantly to $39.2 billion by 2029, with vast growth potential.

From a global perspective, the commercialization of small nucleic acid drugs is accelerating. According to securities data from Guolian Minsheng (601456), as of December 2025, there are 29 approved small nucleic acid drugs worldwide, including antisense oligonucleotides (ASO), siRNA, and nucleic acid aptamers.

Notably, Novartis’s siRNA-based long-acting lipid-lowering drug Leqvio (Inclisiran) has performed remarkably well. Its annual sales in 2025 reached $1.198 billion, a 57% increase, making it a blockbuster drug.

As the market continues to expand and commercialization results emerge, transaction activity in the global small nucleic acid field is heating up. The potential total transaction volume in 2025 is projected to reach $36.5 billion, involving siRNA, ASO, microRNA, and other technologies. For example, Novartis acquired Avidity, a pioneer in AOC antibody-conjugated small nucleic acids, for $12 billion—its largest acquisition in over a decade. Roche, Lilly, GSK, Sanofi, and others are also actively investing in small nucleic acid platforms and pipelines.

Meanwhile, Chinese pharmaceutical companies are also making aggressive moves. On one hand, they are expanding internationally through licensing agreements: For instance, BoWang Pharmaceuticals has partnered with Novartis twice, with total deals exceeding $9 billion. On May 20, 2025, Jingyin Pharmaceutical and CRISPR Therapeutics announced joint development and commercialization of siRNA therapies. Shengyin Bio, focused on innovative RNAi drugs, has partnered with Lilly and Roche in 2025 and 2026.

On the other hand, domestic M&A, R&D, and listing activities are also intense. On January 13, 2026, China Biopharmaceuticals, a Hong Kong-listed leader, announced a full acquisition of Hegiya Bio for 1.2 billion yuan. Hegiya Bio, founded in 2018, focuses on long-acting, low-dose siRNA products.

On the same day, Shengyin Bio disclosed progress on its siRNA candidate SGB-7342 for obesity, which completed its first dose in a Phase I trial at Jilin University First Hospital. This randomized, double-blind, placebo-controlled, single-dose escalation study aims to evaluate safety, tolerability, pharmacokinetics, and pharmacodynamics in overweight and obese patients.

Additionally, small nucleic acid companies are accelerating their IPOs. On January 9, 2026, Suzhou ReBio Biotech successfully listed on the Hong Kong Main Board, with an issue price of HKD 57.97 per share and raising over HKD 1.8 billion. On February 11, ReBio announced a global exclusive licensing agreement with Madrigal Pharmaceuticals, a leader in MASH, to jointly develop six innovative siRNA therapies targeting metabolic-related fatty liver disease based on ReBio’s liver-targeted RiboGalSTAR platform.

Under the agreement, ReBio will receive a $60 million upfront payment and, upon reaching milestones in clinical development, regulatory approval, and commercialization, can earn up to $4.4 billion, including the initial payment, along with royalties based on global net sales.

Despite rapid growth in the domestic small nucleic acid sector, industry challenges remain. Ping An Securities research reports that, compared to global peers, Chinese companies have a significant gap in R&D, with fewer products in Phase III, mainly due to unresolved technical hurdles. Most R&D products are limited to liver targeting or local administration, as specific delivery systems to other tissues are still under development.

“Currently, the small nucleic acid sector has entered a stage where platform strength, clinical data quality, and commercialization efficiency are critical. Global pharma giants are investing heavily, Chinese companies are rising rapidly, and traditional pharma companies are entering the field. The key to winning future breakthroughs in extra-hepatic delivery and next-generation technologies will determine who stands out in this wave of medical innovation,” industry insiders said.