Connect Biopharma Holdings Ltd (NASDAQ: CNTB), a Sino-US biotechnology company that initially operated in Suzhou before relocating its headquarters to the US, has released its financial report for the first half of 2024. The report highlights the company’s strategic decision to retract its presence in the Chinese market as it shifts focus to become a US-centric entity.
As detailed in the company’s press release, Connect Biopharma is proactively implementing measures to substantially decrease its operations in China. This transformation includes a reported 15% reduction in the Chinese workforce over the past year, with further reductions anticipated by year-end.
The company’s lead candidate, the anti-interleukin-4 (IL-4) rademikibart, which is positioned as a potential best-in-class therapy rivaling Sanofi’s Dupixent (dupilumab), has had its production shifted from China to a US-based contract manufacturer. Furthermore, the rights to develop, manufacture, and commercialize rademikibart in China were transferred to Simcere Pharmaceutical in November 2023. This decision is part of a broader cost-reduction strategy, which also involved returning development rights for an H3R antagonist to Pfizer, the original licensor. As of June 2024, Connect Biopharma reported USD 110 million in cash and equivalents, providing sufficient funds to support operations through 2027. – Flcube.com
