Exclusive Interview with Miao Zhenwei of Acrux Therapeutics: Ambitions Behind a NewCo Deal
May 15,2026
The global expansion wave of China’s innovative drugs shows no sign of cooling down at all.
According to PharmaCube data, the number and value of relevant transactions surged sharply in the first quarter of 2026 — totaling 98 deals, with upfront payments reaching 3.6 billion US dollars and an overall transaction value as high as 61.4 billion US dollars. Forecasts suggest that the total BD value of China’s innovative drugs is expected to break the 150-billion-US-dollar threshold for the full year of 2026.
Beyond the soaring figures, models for global expansion are also becoming increasingly diversified. NewCo structures, which have drawn widespread attention over the past two years, have seen some players complete IPOs while others have been acquired.
In the view of Miao Zhenwei, Chairman of Acrux Therapeutics, the ultimate fate of NewCo models has yet to fully unfold. Beyond IPOs and mergers & acquisitions, NewCos are fully capable of growing steadily into multinational corporations (MNCs) in their own right — and this future is already taking shape.
In late April, Acrux Therapeutics entered into a strategic cooperation with K2 Therapeutics, signing an exclusive global collaboration agreement for its innovative ADC candidate ACR246.
This stands as a typical NewCo transaction.
K2 obtained exclusive global rights for the development and commercialization of the candidate. In return, Acrux received an upfront cash payment in the tens of millions of US dollars, corresponding equity consideration in the asset vehicle, milestone payments of up to 730 million US dollars tied to R&D and sales progress, and double-digit tiered revenue sharing on global sales.
Yet judged by K2’s operational approach, this deal is also rather distinctive.
Unlike conventional NewCos built around a handful of individual assets, K2 adopts a hub-and-spoke system. Simply put, ACR246 is merely one part of the company’s expansive pipeline layout. Miao Zhenwei revealed that Acrux and K2 have already finalized another collaboration agreement for an earlier preclinical candidate. Public records show K2 aims to advance at least six pipeline projects in total.
The road for K2 to evolve into a major pharmaceutical enterprise remains long. More thought-provoking amid the current booming NewCo global expansion wave is: What exactly are Chinese biotech firms betting on, and what legacy are they leaving behind?
With these questions in mind, Tonacea conducted an exclusive interview with Miao Zhenwei. From the perspective of an industry insider, we unpack the business logic, trade-offs behind this typical yet unique NewCo transaction, as well as his in-depth insights into how China’s innovative drugs can go global via the NewCo model.
Miao Zhenwei, Chairman of Acrux Therapeutics
01、A Deal Struck at Once
At the end of 2024, MPM BioImpact, a decades-old investment institution, established K2 Therapeutics in Singapore.
As one of America’s oldest biotechnology investment firms, MPM has backed 60 new drugs that have secured FDA approval and led or participated in over 120 IPOs and M&A transactions. Having clearly noticed the robust growth of China’s pharmaceutical market in recent years, MPM positioned K2 as its strategic bridgehead tasked with identifying high-potential innovative drug assets from China.
K2’s choice to base itself in Singapore stems from clear strategic considerations. Singapore’s legal system and corporate governance framework are highly aligned with those of the United States, enabling seamless collaboration with American partners. Meanwhile, its geographic location and time zone are close to China, making it an ideal transfer hub for cross-border China-US transactions.
On the team front, K2’s Chief Medical Officer (CMO) Frank Neumann previously served at Orna Therapeutics. Notably, Eli Lilly announced a full acquisition of Orna earlier to strengthen its layout in cell therapy and gene medicine.
K2 operates under a hub-and-spoke model. This structure refers to a centralized portfolio management team (parent company) holding controlling stakes in multiple subsidiaries. Each subsidiary focuses independently on its own pipeline, projects and therapeutic areas, while the parent company provides centralized management and resource support across diverse therapeutic fields, indications and technological directions.
Essentially, this model represents an R&D portfolio management approach rooted in investment philosophy. By diversifying risks, centralizing management and maintaining professional focus, it boosts the success rate of new drug research and development.
Acrux Therapeutics, focusing on ADC/AXC therapies, became K2’s first Chinese partner. Founder and Chairman Miao Zhenwei is a seasoned industry veteran with years of deep experience in the ADC sector. To date, Acrux has built a pipeline of 10 first-in-class (FIC) and best-in-class (FIG) candidates. Among them, ADC2122 has completed Phase I clinical trials; ACR246 is advancing into Phase Ib/IIa; while ACR335 and ACR317 are in late preclinical research nearing IND filing.
ACR246, the subject of this transaction, is the world’s first clinical-stage anti-5T4 ADC utilizing a TOP1 inhibitor as its cytotoxic payload, boasting dual potential as both best-in-class and the first global product to market in its category.
5T4 is an oncofetal antigen highly expressed in a wide range of solid tumors (including non-small cell lung cancer, breast cancer, ovarian cancer, head and neck cancer, gastric cancer, colorectal cancer, etc.) and cancer stem cells. Closely linked to tumor invasion, metastasis and drug resistance, it is regarded as an ideal therapeutic target. In fact, 5T4 was once a hot target in the ADC field, yet most related pipelines stalled due to unsatisfactory early clinical performance.
ACR246’s differentiated design lies in its innovative TOP1 inhibitor toxin payload. Compared with traditional tubulin inhibitors, it delivers stronger bystander effects and enhanced killing efficacy against heterogeneous tumors, poised to break the efficacy bottleneck of existing ADCs. With a triple design of precise targeting, potent payload and controlled release, ACR246 has also demonstrated an outstanding therapeutic window and safety profile in preclinical studies.
Facilitated by NewCo Capital, K2 quickly connected with Acrux. According to Miao Zhenwei, the two parties initiated contact in September 2025, completed due diligence over several months, and signed the agreement in early 2026 with remarkably efficient overall progress.
Currently, Acrux is conducting Phase I/IIa clinical trials of ACR246 in China, while K2 plans to launch global Phase Ib clinical trials in 2027.
02、Why Choose the NewCo Model
To this day, global expansion has evolved from an optional choice into a mandatory task for Chinese innovative pharmaceutical enterprises — a sentiment fully shared by Miao Zhenwei.
He candidly stated that during negotiations for ACR246, Acrux maintained simultaneous contact with several MNCs, who continued to follow up even after the transaction was disclosed. However, entry thresholds for MNC collaboration have risen significantly compared with the past.
“Completing only Phase I trials is no longer sufficient. They require confirmed RP2D dose data for Phase II trials plus more preliminary efficacy evidence.”
Advancing pipelines to late-stage clinical development demands substantial additional capital and time investment.
Acrux secured 40 million RMB in financing in 2025 to navigate this interim period, yet funding needs remain substantial for global clinical development, making out-licensing inevitable sooner or later. Against this backdrop, establishing direct ties with MPM via K2’s NewCo structure emerged as a more pragmatic and efficient path.
The NewCo model has been widely adopted in recent years for its inherent ability to integrate technology and capital. Professional incubators build clinical and commercial teams, while licensors remain focused on R&D. Through such division of labor, assets rapidly appreciate in value and are eventually acquired by larger buyers.
For instance, just days ago on May 3, UCB announced the acquisition of Candid Therapeutics for up to 2.2 billion US dollars — a NewCo centered on innovative TCE assets.
In 2024, Candid acquired TRC 2004 and Vignette Bio. TRC 2004, incubated by Two River, obtained rights to a CD3/CD20 bispecific antibody from Yitian Jiahe; Vignette Bio, another NewCo incubated by Foresite Labs, held core assets including a BCMA/CD3 bispecific antibody from Alphamab Oncology.
Candid further expanded its pipeline via collaborations with Nonna Bio and WuXi Biologics. Less than two years after its founding, Candid signed a reverse merger agreement with Rallybio for a backdoor listing in March this year, shortly before reaching the acquisition deal with UCB.
Another landmark case is Kailera, a NewCo established in 2024 specifically to house three metabolic pipeline assets licensed from Hengrui Medicine.
In May 2024, Hengrui out-licensed three oral small-molecule pipeline candidates — GLP-1 receptor agonist HRS-7535, GLP-1/GIP dual agonist HRS-9531, and next-generation incretin product HRS-4729 — to the newly founded Hercules (later renamed Kailera). Kailera obtained exclusive global development, manufacturing and commercialization rights excluding Greater China.
Approximately two years after its founding, Kailera officially listed on the NASDAQ in April this year at an offering price of 16 US dollars per share, raising 625 million US dollars and setting the record for the largest biotech IPO in the United States since 2021. On its debut trading day, Kailera’s share price surged 63%, pushing its market cap above 3 billion US dollars and gaining immediate industry prominence.
Now Acrux has embarked on the NewCo global expansion path as well. Miao Zhenwei disclosed that beyond the disclosed ACR246 collaboration, Acrux and K2 have finalized another deal for an earlier preclinical candidate under a similar transaction framework, which is now moving forward. Further new project collaborations may follow in the future.
He emphasized that Acrux will always maintain operational independence. Beyond the two signed projects, the company remains open to both continued NewCo model partnerships and cooperation with MNCs at any developmental stage.
03、The Ultimate Destination of NewCos
IPOs and acquisitions are commonly regarded as the endgame for NewCos. Yet in Miao Zhenwei’s view, these are far from the only possible outcomes.
Miao Zhenwei categorizes existing NewCo models. Some market NewCos are built around a single product, functioning more as pure financial investments. Once the product is out-licensed, all parties leverage their respective strengths — early-stage R&D from China paired with overseas clinical development and commercialization — and the NewCo fulfills its mission upon eventual asset sale.
“This model is inherently viable and serves as a sound exit route,” he noted. By contrast, Acrux’s partnership with MPM is strategic rather than product-specific, establishing a long-term complementary collaboration framework. Each party focuses on its core expertise, enabling synergy on individual projects and sustained cooperation across multiple pipelines. This greatly enhances the stability and predictability of overall R&D progress.
Based on this outlook, Miao Zhenwei believes the NewCo model will evolve into a normalized cooperation format. Moreover, the ultimate potential of NewCos extends well beyond IPOs or acquisitions — they can grow into independent global pharmaceutical giants in their own right.
“When a NewCo holds a diversified portfolio of products and generates robust cash flow from selective asset divestments, its clinical and commercial capabilities will continuously accumulate and strengthen. It can then transform from a mere asset trader into a truly influential global pharmaceutical enterprise. Of course, this hinges on both investors’ long-term vision and the team’s inherent capabilities.”
In fact, an increasing number of Chinese biotechs are breaking free from the short-term “fast in, fast out” mindset and embracing longer-term expectations for the NewCo model. CanMab Biotech stands as a prime example.
CanMab is among China’s most active adopters of the NewCo model. Since 2024, it has completed four transactions, spinning off early pipelines including CM512, CM336 and CM313 into separate NewCo entities.
Chen Bo, Chairman of CanMab, shared a similar perspective in interviews, stating that NewCo collaborations are not merely about securing additional capital, but crucially about accumulating overseas clinical development expertise.
Ouro Medicines represents the most typical case. In November 2024, CanMab out-licensed global rights (excluding Greater China) for its BCMA/CD3 bispecific antibody CM336 to Ouro, securing an upfront payment of approximately 16 million US dollars plus a 15% equity stake.
In March this year, Gilead fully acquired Ouro for a 1.675-billion-US-dollar upfront payment plus milestone payments of up to 500 million US dollars. As a shareholder and technology provider, CanMab gained roughly 250 million US dollars from the upfront payment plus up to 70 million US dollars in potential milestones. This marks the first full acquisition of a China-originated NewCo by a global MNC.
Frankly speaking, the evolutionary path for NewCos envisioned by Miao Zhenwei remains a long way from reality. While NewCo transactions continue to grow in scale and complexity, turning NewCos into sustainable long-term industrial platforms requires more value-driven, long-term oriented market participants.
Miao Zhenwei’s perspective is both a prediction and an aspiration. Amid the ongoing NewCo wave, if two or three truly globally competitive independent pharmaceutical enterprises can emerge, all current exploration, debate and hesitation will prove meaningful.
For China’s innovative drug industry to evolve from following pace to parallel development — and even take the lead in select sectors — the ultimate foundation lies not in one or two blockbuster molecules, but in a sustainable innovation ecosystem and long-term industrial patience.
Reference Sources
- CanMab Completes Four NewCo Global Deals Within Six Months; Chairman: “Not Premature Harvesting, But Nurturing Robust Growth”, Yicai Global
- Post-IPO Rapid Acquisition: A New Chapter for China’s NewCos
- Acrux Therapeutics Joins Hands with K2 Therapeutics to Advance Global Clinical Development of ACR246, Acrux Official Release
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