OCTOBERASIA BUSINESS OUTLOOK8OCTOBERNEWSROOMJAPAN STARTUP BUYOUTS SURGE IN 2024 AMID IPO RULE PRESSUREIn 2024, startup buyouts in Japan surged to a record high as looming Tokyo Stock Exchange (TSE) rule changes and growing regulatory pressure prompted founders to pursue mergers and acquisitions (M&A) over initial public offerings (IPOs).According to For Startups, a leading market research firm, Japan saw 199 startup acquisitions in 2024, more than double the total in 2020. In contrast, IPO activity slowed dramatically, with just 21 public listings recorded in the first half of 2025 a reflection of the shifting entrepreneurial climate.The regulatory shift stems from new rules targeting companies listed on the TSE Growth Market, set to take effect by 2030.Firms must reach a market capitalization of at least 10 billion yen (US$66 million) within five years of listing or face delisting. Alarmingly, over 60 percent of the 600+ firms currently on the Growth Market fall short of that benchmark.As a result, Japanese startup founders are increasingly opting for acquisitions, hoping for smoother exits and more sustainable growth. The trend is also attracting international investors, including Goldman Sachs and KKR, who have participated in several major funding rounds for Japanese startups, seeking global-scale returns.This pivot toward private exits and foreign capital reflects a broader shift in Japan's innovation ecosystem, one that may redefine how the country builds its next generation of globally competitive tech companies. CHINESE BIOTECH FIRMS HANSOH & LEADS BIOLABS INK $2.5B DRUG DEALSChinese biotech companies Leads Biolabs and Hansoh Pharmaceutical Group have entered into drug licensing arrangements with multinational corporations for a combined total of up to US$2.5 billion.Based in Jiangsu province, Hansoh is set to license global rights, excluding mainland China, Hong Kong, Macao, and Taiwan for a colon cancer drug candidate to Roche.The agreement entails an initial payment of US$80 million and subsequent milestone payments to reach a maximum of US$1.5 billion, depending on success in development, regulatory approval, and commercial milestones.The drug candidate is an antibody-drug conjugate targeting a specific molecule associated with gastrointestinal cancers. Antibody-drug conjugates are drugs that utilize a targeted antibody to deliver chemotherapy directly to cancer cells. Specifics regarding Leads Biolabs' agreement were not included in the filing. · hinese biotech giants Hansoh Pharmaceutical and Leads Biolabs secure up to US$2.5B in global drug licensing deals.· Hansoh licenses colon cancer antibody-drug conjugate to Roche with potential milestone payments of US$1.5B.· Targeted antibody-drug therapies from China aim to revolutionize gastrointestinal cancer treatment worldwide.· 199 startup acquisitions in 2024--double the 2020 figure· IPOs dropped to 21 in H1 2025 amid rising regulatory scrutiny· Foreign investors like Goldman Sachs & KKR fueling major deals
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