US firm ArriVent’s plunge shows risks facing China’s biotech expansion into global markets
US-listed ArriVent lost nearly half its value after a Chinese-licensed cancer drug failed a late-stage trial
US firm ArriVent BioPharma’s shares plummeted after a late-stage trial failure involving a cancer drug licensed from China, a setback that analysts said highlighted the challenges facing Chinese biotech companies expanding overseas.
New York-listed ArriVent closed down nearly 47 per cent on Tuesday after reporting that its cancer treatment firmonertinib failed to meet its main goal in a phase 3 trial.
Firmonertinib was originally developed by Shanghai Allist Pharmaceuticals to treat non-small cell lung cancer (NSCLC), targeting epidermal growth factor receptor gene mutations including exon 20 insertion.
ArriVent acquired the exclusive rights in 2021 to develop and commercialise the drug outside China, becoming one of the earliest US biotechnology firms licensing Chinese drug assets.
