Avere Therapeutics, a newly formed immunology company led by the executive team that guided Akero Therapeutics through its $4.7 billion acquisition by Novo Nordisk, has announced plans to go public via a reverse merger with NextCure. The transaction, accompanied by $320 million in new funding led by Fairmount and Hansoh Pharmaceutical, positions Avere to advance AVR-001, a long-acting oral IL-23 inhibitor licensed from the Chinese drugmaker that could challenge blockbuster biologics like AbbVie's Skyrizi and Johnson & Johnson's Icotyde.

The deal underscores a growing trend of Western biotechs licensing differentiated assets from Chinese pharmaceutical companies to address large, established therapeutic markets. Hansoh Pharmaceutical, one of China's largest and most prolific drug developers, has built a substantial pipeline of innovative molecules across oncology, immunology, and metabolic diseases. The out-licensing of AVR-001 to Avere represents one of the more significant China-origin dermatology deals in recent years, reflecting the maturation of China's biopharmaceutical innovation ecosystem.

AVR-001 targets interleukin-23 (IL-23), a cytokine that plays a central role in the pathogenesis of psoriasis and other autoimmune conditions. The IL-23 inhibitor class has become one of the most commercially successful in dermatology, with AbbVie's Skyrizi (risankizumab) generating over $11 billion in annual sales and rapidly displacing older TNF-alpha inhibitors. Johnson & Johnson's Icotyde (guselkumab) has similarly achieved multi-billion-dollar revenues, establishing IL-23 blockade as the dominant mechanism in moderate-to-severe plaque psoriasis.

What differentiates AVR-001 from existing therapies is its oral formulation and extended dosing profile. Current IL-23 inhibitors are administered as subcutaneous injections, typically every eight to twelve weeks. Avere is developing AVR-001 as a pill that could be taken less frequently than Johnson & Johnson's daily oral drug Icotyde, potentially offering patients a more convenient treatment option without the need for injections. If successful, this could significantly expand the addressable patient population, particularly among individuals who prefer oral therapy or have needle aversion.

For API and intermediates suppliers, the implications of this deal are substantial. IL-23 inhibitors are complex biologic molecules that require sophisticated manufacturing capabilities, including mammalian cell culture, protein purification, and stringent quality control. If AVR-001 advances into late-stage clinical trials as planned, Avere will need to establish a robust supply chain for both the drug substance and drug product, creating opportunities for CDMOs with expertise in biologics manufacturing and oral formulation development.

The $320 million funding round, which includes both equity and convertible notes, provides Avere with sufficient capital to complete Phase 2 testing of AVR-001 and initiate a global Phase 3 trial. This level of investment signals strong confidence from institutional investors in the commercial potential of the IL-23 inhibitor market, which analysts project could exceed $30 billion globally by 2030 as new indications beyond psoriasis — including psoriatic arthritis, Crohn's disease, and ulcerative colitis — are explored.

The reverse merger with NextCure, a Nasdaq-listed company that has struggled following research setbacks and layoffs in 2024, provides Avere with a public listing without the traditional IPO process. NextCure shareholders will retain just over 1% of the combined company, though they will be eligible for contingent value rights tied to any future outlicensing deals for NextCure's legacy assets. The combined entity will trade under the ticker symbol AVRX following the expected close in the second half of 2026.

From a supply chain perspective, the Avere-Hansoh collaboration highlights the increasing complexity of cross-border pharmaceutical partnerships. Licensing deals involving Chinese-origin molecules require careful navigation of regulatory frameworks, intellectual property protections, and manufacturing standards across multiple jurisdictions. For suppliers and CDMOs, this creates opportunities to serve as bridge partners, ensuring that quality standards and regulatory requirements are met across both Chinese and Western manufacturing sites.

The psoriasis market continues to see fierce competition, with multiple companies pursuing next-generation IL-23 inhibitors, oral formulations, and combination therapies. Avere's entry with an oral, long-acting IL-23 inhibitor adds another dimension to this competitive landscape. If AVR-001 delivers on its promise of convenient oral dosing with biologic-like efficacy, it could capture meaningful market share from injectable incumbents and reshape how moderate-to-severe psoriasis is treated globally.

For pharmaceutical suppliers and API manufacturers, the Avere-Hansoh deal represents a broader trend: the growing flow of innovative drug candidates from Chinese biotechs to Western development-stage companies. As more such deals are announced, suppliers with established capabilities in both Chinese and Western regulatory environments, as well as expertise in complex biologic and oral formulation manufacturing, will be best positioned to capture the resulting demand. The IL-23 inhibitor market's continued expansion ensures that manufacturing capacity and supply chain reliability will remain critical competitive differentiators for years to come.