Recently, Genentech, a subsidiary of Roche, announced the termination of its cooperation agreement with Bicycle Therapeutics, and this decision will take formal effect in August.
Genentech has maintained an exclusive partnership with Bicycle since February 2020. At that time, Bicycle received an upfront payment of $30 million, with the potential to secure a total transaction value of up to $1.7 billion (approximately RMB 12.2 billion) upon Genentech's achievement of specific R&D milestones. However, the cooperation failed to progress smoothly. Since 2023, Genentech has successively terminated multiple projects under the partnership, culminating in the complete suspension of the collaboration.
Regarding the reasons for the termination, on one hand, Genentech has re - prioritized its collaborative projects, gradually reducing investment in the Bicycle. On the other hand, Bicycle's technology platform has certain limitations. Its peptide screening is more difficult than that of antibodies, and the half - life is shorter, which limits the development efficiency. Compared with antibody - drug conjugates (ADCs), Bicycle's peptide - drug conjugates (PDCs) have a shorter half - life, resulting in insufficient exposure of the drug in the tumor microenvironment, thus limiting the therapeutic effect.
The termination of the cooperation has had a significant impact on both parties.
For Bicycle Therapeutics, the termination has undoubtedly dealt a blow to its financial situation. However, Bicycle had anticipated this as early as last year when the two parties lowered the priority of the cooperation. To cope with financial pressures, Bicycle announced a series of cost - cutting plans, including laying off approximately 25% of its employees, to extend the use period of its cash reserves to 2028. Although a Bicycle spokesperson stated that the layoffs were not directly related to the termination of the cooperation, this decision undoubtedly reflects the company's pressure on resource allocation.
For Roche, the termination of the cooperation has reduced its R&D expenses in the second quarter of 2025. Roche can optimize the allocation of R&D resources and reduce R&D costs by terminating some cooperative projects, thereby focusing on the advancement of other core projects.
For example, in Roche's oncology R&D pipeline, Tecentriq (atezolizumab) is an important immunotherapeutic drug. Its subcutaneous injection formulation has been approved for marketing by the UK MHRA, and it is applicable to all indications for which the previous intravenous formulation has been approved, including lung cancer, liver cancer, etc. Roche also has multiple layouts in the field of breast cancer treatment. Giredestrant is an oral SERD drug for breast cancer in the Phase III stage. Roche is still actively advancing the indication of ER - positive breast cancer, and the first result of the Phase III persevERA study on first - line treatment of ER - positive breast cancer is expected to be announced this year.
Conclusion:
Although Roche and Bicycle have terminated their cooperation, it does not mean that the cooperation is a complete failure. Instead, both parties are exploring and adjusting to find a path more suitable for their own development. Although the end of the cooperation has come, both Roche and Bicycle will continue to deepen their efforts in their respective fields and contribute new forces to overcoming major diseases such as cancer.
Reference sources:
1. Yaozhi Data
2. https://mp.weixin.qq.com/s/Wl_3PjpWGBxeTLTNltkioQ
3. https://mp.weixin.qq.com/s/oQ7t - HyB1zPm2DsqX5N9VQ
For example, in Roche's oncology R&D pipeline, Tecentriq (atezolizumab) is an important immunotherapeutic drug. Its subcutaneous injection formulation has been approved for marketing by the UK MHRA, and it is applicable to all indications for which the previous intravenous formulation has been approved, including lung cancer, liver cancer, etc. Roche also has multiple layouts in the field of breast cancer treatment. Giredestrant is an oral SERD drug for breast cancer in the Phase III stage. Roche is still actively advancing the indication of ER - positive breast cancer, and the first result of the Phase III persevERA study on first - line treatment of ER - positive breast cancer is expected to be announced this year.
Conclusion:
Although Roche and Bicycle have terminated their cooperation, it does not mean that the cooperation is a complete failure. Instead, both parties are exploring and adjusting to find a path more suitable for their own development. Although the end of the cooperation has come, both Roche and Bicycle will continue to deepen their efforts in their respective fields and contribute new forces to overcoming major diseases such as cancer.
Reference sources:
1. Yaozhi Data
2. https://mp.weixin.qq.com/s/Wl_3PjpWGBxeTLTNltkioQ
3. https://mp.weixin.qq.com/s/oQ7t - HyB1zPm2DsqX5N9VQ
