VelaVigo Strengthens Position with Second Out-Licensing Agreement for Innovative Bi-specific Antibody

VelaVigo Bio Announces Strategic Out-Licensing Deal

In a significant move for the biotech industry, VelaVigo Bio, the American subsidiary of VelaVigo Cayman Limited, has secured its second out-licensing agreement for an innovative bi-specific antibody. This milestone deal has been granted to Ollin Biosciences, Inc., allowing them exclusive rights to develop, manufacture, and commercialize VBS-102 globally, excluding Greater China. VelaVigo retains the rights for the Greater China market, showcasing its commitment to strategic partnerships in various regions.

The agreement marks a remarkable achievement for VelaVigo, reflecting its advanced capabilities in antibody and antibody-drug conjugate (ADC) discovery and development. The terms of this deal are promising, with VelaVigo set to receive an upfront fee along with potential future payments that could total an impressive $440 million. This includes a combination of cash and equity-based rewards, alongside tiered royalties on sales in Ollin's territory. Such a financial framework not only enhances VelaVigo's prospects for sustainability but also validates its innovative business model that blends business development (BD) and venture capital (VC) approaches for long-term growth.

The announcement follows a successful licensing arrangement with Avenzo Therapeutics in November 2024 and a $50 million Pre-A funding round completed earlier this year in February 2025. This cumulative success underlines VelaVigo’s prolific ability to forge partnerships that maximize the commercial potential of its groundbreaking discoveries while addressing global healthcare needs.

Jing Li, the CEO of VelaVigo, expressed strong optimism regarding this second licensing deal, stating that it reinforces the effectiveness of their discovery platform and their potential to advance novel therapeutics with significant promise. Li highlighted that with their first bi-specific asset entering the clinical trial phase this year and a robust pipeline of innovative molecules, VelaVigo is poised to illustrate its capability of translating pioneering science into impactful clinical-stage programs.

This strategic license also indicates VelaVigo's proactive approach in expanding its global clinical development capabilities. As part of its ongoing efforts, the company is scheduled to present findings on five additional first-in-class (FIC) or bi-specific (BIC) molecules at forthcoming industry conferences, reflecting its intention to seek further partnership opportunities around the world.

Co-founder and Chief Business Financial Officer, Tong Zhang, stated that their BD+VC model is specifically designed to foster sustainable value for investors and partners. He emphasized how this latest licensing agreement not only underscores their success in execution but also opens doors to broaden their international footprint and expedite pipeline development.

VelaVigo is quickly emerging as a key player in the biotech landscape, leveraging its efficient discovery engine and robust translational medicine capabilities. Founded in 2021 with an initial investment of $50 million, the company operates research and development centers in Shanghai while also managing clinical operations in Boston, USA. With its first-in-class bispecific ADCs expected to enter clinical development in both the U.S. and China in 2025, VelaVigo is dedicated to maximizing drug development efficiency and optimizing returns on investment through global partnerships.

In summary, VelaVigo’s second out-licensing agreement with Ollin Biosciences marks a pivotal chapter in its growth trajectory, affirming its innovative discovery platform's potential while positioning itself strategically in the competitive biotech market. With its eye on the future, VelaVigo is set to become a trailblazer in biopharmaceutical advancements, striving not only for innovation but also for real-world solutions that address pressing medical challenges.