SHANGHAI and BOSTON, April 17, 2025 /PRNewswire/ -- VelaVigo Bio, the U.S. subsidiary of VelaVigo Cayman Limited, a pioneering biotech firm specializing in the discovery and development of innovative multi-specific antibodies and antibody-drug conjugates (ADCs), has made significant strides in its business strategy. The company has announced a new out-licensing agreement with Ollin Biosciences, Inc., granting Ollin exclusive rights to develop, manufacture, and commercialize VBS-102, a groundbreaking bispecific antibody, on a global scale, with the exception of Greater China. Importantly, VelaVigo retains rights for the Greater China region, allowing it to continue its operations in this critical market.

The terms of this strategic agreement are financially robust, providing VelaVigo with an upfront payment as well as additional future payments contingent on development, regulatory approvals, and commercial milestones. These payments could total approximately $440 million, combining cash and equity, along with tiered royalties based on sales within Ollins territory. This lucrative deal not only strengthens VelaVigos financial position but also validates its innovative approach to drug development.

This announcement follows VelaVigo's first licensing deal established with Avenzo Therapeutics in November 2024 and comes on the heels of a successful $50 million Pre-A funding round completed in February 2025. These accomplishments highlight the company's unique business model that effectively merges business development (BD) and venture capital (VC) strategies, fostering sustainable growth and operational success.

The agreement with Ollin exemplifies VelaVigo's capability to identify and advance promising therapeutic solutions while strategically partnering to enhance overall value creation. The organization is also pushing forward with its fully owned lead asset, a first-in-class (FIC) and bispecific ADC, which is slated to enter U.S. clinical trials later this year. Furthermore, VelaVigo is broadening its global clinical development capabilities and will present data for five additional FIC or bispecific molecules at forthcoming industry conferences, aiming to attract further partnership opportunities across the globe.

This second out-licensing deal is a strong validation of our discovery platform and our ability to identify and advance novel therapeutics with significant potential, remarked Jing Li, CEO of VelaVigo. She emphasized, With our first asset entering the clinic this year and a deep pipeline of innovative molecules, we are demonstrating our capacity to translate cutting-edge science into valuable clinical-stage programs. Our ambition is to establish ourselves as a leading global biotech company by leveraging strategic partnerships while simultaneously advancing our portfolio.

In addition, Tong Zhang, co-founder and Chief Business & Financial Officer of VelaVigo, stated, Our BD+VC model is crafted to create sustainable value for both investors and partners. He further elaborated, This second licensing deal, in conjunction with our successful $50 million Pre-A round, highlights our proficiency in executing both financial strategies and strategic collaborations. We are actively engaging with potential partners to broaden our global reach and expedite the development of our pipeline.

About VelaVigo: Founded in 2021 with an initial investment of $50 million, VelaVigo has established itself as a leader in the discovery and development of antibody and ADC technologies. The company boasts a highly efficient discovery engine and possesses strong capabilities in translational medicine, chemistry, manufacturing, and early clinical development. Its leading products, including first-in-class bispecific ADCs, are expected to enter clinical development phases in both the U.S. and China in 2025. VelaVigo is committed to enhancing its clinical development capabilities while forging partnerships with biopharmaceutical companies and investors globally to maximize drug development efficiency and return on investment. The company's research and development centers are located in Shanghai, with clinical operations based in Boston.