Dual-Targeting Biologics in I&I: A Fast-Growing Global Pipeline and What It Means for Global BD

Locust Walk examined the global dual-targeting (bi-/multi-specific, fusion protein, etc.) biologics pipeline in immunology & inflammation, from target-pair competitive density to BD deal trends and valuation benchmarks, to assess where the next wave of I&I partnering opportunity lies.

1. Monospecific blockbusters built massive peak franchises, but a structural efficacy ceiling is pushing the field toward dual-targeting. Pathway redundancy, escape mechanisms, and biosimilar erosion are driving the shift. ~70% of active global programs remain preclinical, marking a still-early, fast-moving class.

    

2. China has reached near-parity with the rest of the world at the earliest stages; ex-China still leads late-stage validation. China now originates ~46% of all global programs, with preclinical volume nearly matching the rest of the world, while ex-China holds the only US approval to date. ~80% of China’s pipeline has yet to enter US development, representing a large untapped partnering pool.
   
   
3. A handful of “red ocean” target pairs anchor the pipeline, but molecule-level engineering, not target selection, now decides winners. Divergent outcomes within the same target pair show that dosing, route, and immunogenicity increasingly matter more than the target combination itself.
   
   
4. I&I bispecific dealmaking is following the same trajectory as China ADCs 4-5 years ago: signed early and led by China. 13 disclosed deals since 2024 total well over $13B, with ~70% signed at preclinical/discovery stage and 9 of 13 China-originated; valuation scales meaningfully with development stage, and NewCo formation is increasingly used as an intermediate step for earlier-stage assets.

As target pairs mature and engineering differentiation becomes the deciding factor, partners who engage early will be best positioned to capture the next wave of value in I&I dual-targeting.

We welcome the opportunity to connect and discuss further.