SciNeuro and Novartis strike up to $1.67B deal for next-gen Alzheimer’s disease therapeutics

On January 12, SciNeuro Pharmaceuticals announced that it had reached a global licensing and collaboration agreement with Novartis Pharma AG, to advance SciNeuro's novel Aβ (beta-amyloid) targeted antibody program for the treatment of Alzheimer's disease. The program has identified de novo antibody candidates, which incorporate SciNeuro's proprietary blood brain barrier shuttle technology and are expected to differentiate from existing Aβ-targeted drugs.

SciNeuro and Novartis will collaborate during the early development phase, with Novartis leading all subsequent product development and commercialization efforts globally. According to the agreement terms, SciNeuro will receive an upfront payment of $165 million. Additionally, SciNeuro is eligible to receive research funding, potential development, regulatory, and commercial milestone payments of up to $1.5 billion, as well as tiered royalties. The total value of this collaboration amounts to $1.665 billion, approximately RMB 11.6 billion. The transaction is expected to be completed in the first half of 2026.

SciNeuro Pharmaceuticals was founded in 2020 and is dedicated to conquering neurodegenerative diseases such as Parkinson's disease and Alzheimer's disease (AD). Based on profound insights into disease mechanisms, SciNeuro has built a comprehensive pipeline from discovery to clinical development, focusing on three key pathogenic mechanisms: neurovascular inflammation, protein pathology, and immune responses. This strategy precisely targets core disease pathways, including Lp-PLA2 (associated with neuroinflammation regulation), Aβ (implicated in Alzheimer's disease pathogenesis), and LRRK2 (linked to genetic susceptibility in Parkinson's disease).

Since its establishment, SciNeuro has completed two rounds of financing.

In December 2020, SciNeuro completed a $100 million Series A financing round. This round was co-led by Lilly Asia Ventures and ARCH Venture Partners, with participation from Boyu Capital, General Atlantic, HSG (formerly known as Sequoia Capital China), TF Capital, and Zoo Capital. In December 2025, SciNeuro completed a $53 million Series B financing round, co-led again by Lilly Asia Ventures and ARCH Venture Partners, with participation from both existing and new investors. In the same month, SciNeuro also received a $5 million non-dilutive research grant from The Michael J. Fox Foundation for Parkinson's Research to support the development of innovative drugs for CNS diseases.

Notably, Lilly Asia Ventures participated in both of SciNeuro's financing rounds. Coincidentally, SciNeuro's founder also previously served as a Venture Partner at Lilly Asia Ventures. Min Li, PhD, Founder and CEO of SciNeuro, earned his undergraduate degree in Biochemistry from Wuhan University before pursuing a Ph.D. in Molecular Immunology at Johns Hopkins University in the United States. He subsequently completed postdoctoral training in Neuroscience at the University of California, San Francisco.

On the research front, Min Li served at the Johns Hopkins University School of Medicine for 20 years, rising from Assistant Professor to tenured Professor of Neuroscience, and has authored over 120 research papers and patents. On the industry front, he previously held the positions of Senior Vice President at GlaxoSmithKline, Global Head of Neuroscience Drug Discovery, and President of GSK's R&D Center in China. He later transitioned to become a Venture Partner at Lilly Asia Ventures, bringing extensive experience in research, industry, and investment.

"The anti-amyloid program represents one of SciNeuro's key strategic R&D priorities to target neurodegenerative disease. We are thrilled to collaborate with Novartis to continue its development, given their preeminent capabilities and commitment to next generation therapies for neurodegenerative diseases," said Min Li, PhD, Founder and CEO of SciNeuro.  "This collaboration delivers an optimal synergy, combining our expertise in disease biology and early development with Novartis' global leadership in clinical development and commercialization," he added.

CNS diseases, exemplified by Alzheimer's disease, have long been considered a "black hole" in pharmaceutical research and development.

In the first quarter of 2025, AstraZeneca announced a complete withdrawal from the CNS field, reallocating resources to core areas such as oncology and metabolic diseases, while terminating several neuroscience programs. These included MEDI1814, an Alzheimer's drug developed in collaboration with Eli Lilly over many years; MEDI0618 for migraine treatment; and MEDI7352 targeting osteoarthritis pain and diabetic neuropathy. Over the past decade, several other MNCs, including Pfizer, Amgen, and MSD, have similarly scaled back or exited the CNS arena, while remaining players like Biogen are actively exploring new anchors for future R&D and business growth.

Despite the setbacks faced by many companies in the CNS field, hope has never been extinguished. For instance, in 2023, Leqembi, an Aβ antibody co-developed by Biogen and Eisai, received full FDA approval, becoming the first Alzheimer's drug to gain full FDA approval in two decades. In July 2024, a second Aβ antibody, Eli Lilly's donanemab, also received FDA approval. Moreover, in recent years, other major players such as Sanofi, Roche, AbbVie, GSK, Takeda, Novartis, and Sumitomo Pharma have all made high-profile commitments to the CNS field.

This continued investment by pharmaceutical companies responds to the vast unmet patient needs. According to WHO projections, CNS diseases will become the second leading cause of death within 20 years. In China, one-sixth of the population suffers from neurological disorders. The aging population has led to a continuous rise in neurodegenerative diseases. Reports indicate that China has over 2.5 million Parkinson's disease patients and nearly 10 million Alzheimer's disease patients. However, for CNS diseases such as schizophrenia, addiction, depression, and Alzheimer's, the effectiveness of existing treatments is below 50%, highlighting a significant clinical need and market potential.

According to Frost & Sullivan, the global CNS drug market reached $124.5 billion in 2019, making it the fourth-largest pharmaceutical market. Over the next 15 years, the global CNS drug market is projected to grow steadily, reaching $172.1 billion by 2034. In China, the CNS drug market was valued at $29.6 billion in 2019 and is expected to expand rapidly, reaching $57.1 billion by 2034.

Given the complexity of the CNS and the challenges in drug development, there remains a substantial unmet clinical need for many CNS diseases. With continuous advancements in sophisticated research instruments, fundamental research in the CNS field has reached a tipping point. It is anticipated that within the next 5 to 10 years, more CNS diseases will be treatable with effective drug therapies. Within the industry, the first company to identify a breakthrough is likely to achieve a milestone advancement and swiftly capture a blue ocean in the respective disease segment. It is hoped that the powerful collaboration between SciNeuro and Novartis will herald a new dawn for the CNS field.