Crescent and Kelun-Biotech Forge $1.25B Partnership for Innovative Cancer Therapies

Massachusetts-based Crescent Biopharma and China's Sichuan Kelun-Biotech have announced a groundbreaking partnership worth up to $1.25 billion, focusing on the development of PD-1/VEGF bispecific antibodies and antibody-drug conjugates (ADCs) for solid tumors. This collaboration marks a significant milestone in the rapidly evolving landscape of cancer therapeutics, particularly in the realms of bispecific antibodies and ADCs.

Deal Structure and Asset Exchange

The core of this partnership involves a strategic exchange of assets and territories. Crescent will pay $80 million upfront and commit to milestone payments totaling $1.25 billion for the rights to Kelun-Biotech's SKB105 outside the Greater China region. SKB105, now dubbed CR-003 by Crescent, is an ADC targeting integrin beta-6 (ITGB6), a protein commonly overexpressed in various malignancies.

In return, Kelun-Biotech will provide Crescent with $20 million upfront and up to $30 million in milestone payments for the rights to Crescent's CR-001, a PD-1/VEGF bispecific antibody, within China. This arrangement allows for parallel clinical development of CR-001 in both global and Chinese trials, potentially accelerating the drug's path to market.

Clinical Development Pipeline

Both companies are poised to push their respective assets into Phase I/II development for solid tumors in the first quarter of 2026. Crescent aims to report proof-of-concept data for CR-001 by early 2027, with Kelun-Biotech advancing SKB105 on a similar timeline. A combination trial of the bispecific antibody and ADC is planned for 2027, highlighting the potential synergies between these two modalities in cancer treatment.

Crescent is also developing CR-002, another ADC designed to deliver a cytotoxic topoisomerase inhibitor to PD-L1-expressing cells. The company plans to initiate a Phase I/II trial for CR-002 in the second half of 2026, with proof-of-concept data expected a year later.

Market Context and Competition

This partnership comes amid growing interest in PD-1/VEGF bispecific antibodies and ADCs within the pharmaceutical industry. The PD-1/VEGF bispecific field has seen significant activity, with major players like Bristol Myers Squibb, Merck & Co., and Pfizer making substantial investments. Notably, Summit Therapeutics and Akeso's ivonescimab showed promising results against Merck's Keytruda in a late-stage non-small cell lung cancer study in September 2024.

The ADC market is similarly dynamic, with fewer than 20 FDA-approved ADCs to date. Recent deals in this space include Takeda's $11.4 billion collaboration with Innovent and Roche's $1.5 billion agreement with Hansoh Pharmaceutical for ADCs targeting various cancers.

Crescent CEO Joshua Brumm framed the company's position as a strategic "fast follower," allowing them to learn from and potentially improve upon earlier entrants in the bispecific antibody space. This approach, combined with their focus on combination therapies, positions Crescent to potentially develop best-in-class treatments across multiple indications.