Su Zhang, a prominent business development consultant credited with pioneering biopharma’s China “NewCo” model, is facing a federal lawsuit in the United States filed by China’s Lepu Medical Technology. The complaint alleges trade secret misappropriation, corporate double-dealing, and breaches of fiduciary duty during dealmaking negotiations for valuable GLP-1 weight-loss drug candidates.
The Bottom Line
- The Allegations: Lepu Medical Technology claims consultant Su Zhang secretly worked as the chief business officer for direct competitor BrightGene Pharmaceutical while managing Lepu’s Western partnership outreach.
- Financial Demands: Lepu is seeking the return of its $500,000 retainer, the disgorgement of all benefits received during the alleged breach, and court injunctions to protect its proprietary trade secrets.
- Model Precedent: The dispute hits a core biopharma financing structure, disrupting the lucrative “NewCo” asset spin-off trend popularized by Zhang’s previous work with Hengrui Pharmaceuticals and Kailera Therapeutics.
Anatomy of a Cross-Border Partnership Breakdown
The legal feud, initially filed in New York state court before moving to federal court, targets the foundational mechanics of how Chinese pharmaceutical assets reach Western markets. In December 2024, Lepu Medical Technology—parent company of Lepu Biopharma—retained Su Zhang’s consulting firm, CoDevCo, as its exclusive business development mechanism. The objective was clear: secure international partners for a high-value cardiometabolic portfolio featuring obesity, Type 2 diabetes, fatty liver disease, and muscle preservation candidates.
According to the court filing, Lepu lacked familiarity with Western business practices and relied entirely on Zhang. Yet, the balance sheet tells a different story of divided loyalties. The complaint states that while negotiating for Lepu, Zhang was simultaneously acting as the chief business officer for BrightGene Pharmaceutical, a direct market rival. “She never adequately disclosed the role, never sought Lepu’s consent, and never proposed any safeguard,” Lepu asserted in the legal filing.
Here is the math behind the dispute: Lepu paid a $500,000 retainer to CoDevCo, operated out of Zhang’s residential address. When relations soured after CoDevCo pursued transaction-based success fees via arbitration in Singapore, Lepu retaliated with the New York lawsuit. The company is demanding full fee disgorgement alongside strict judicial protections for its confidential pipeline data.
The Risk Profile of the “NewCo” Dealmaking Architecture
Zhang earned her reputation by orchestrating a landmark deal for Hengrui Pharmaceuticals, granting exclusive rights for a GLP-1 portfolio to Hercules—subsequently rebranded as Kailera Therapeutics—backed by private equity and venture capital. That transaction established the modern “NewCo” blueprint, allowing Western investors early access to Chinese innovation while securing long-term equity upside for the originating licensor.
For Lepu Medical Technology, replicating this trajectory was critical to monetizing assets like its GLP-1/GIP/FGF21 agonist MWN105, which was out-licensed to a NewCo named Sidera Bio in the fall of 2025 through subsidiary Shanghai Minwei Biotechnology.
| Entity / Deal | Asset Focus | Transaction Structure | Market Milestone |
|---|---|---|---|
| Hengrui & Kailera Therapeutics | GLP-1 Portfolio | NewCo Spin-off & Equity Stake | $625M Nasdaq IPO (April 2026) |
| Lepu Medical & Sidera Bio | MWN105 (GLP-1/GIP/FGF21) | NewCo Out-Licensing Agreement | Completed Fall 2025 |
| Lepu Medical & CoDevCo | Cardiometabolic Pipeline | Exclusive BD Consulting Retainer | Disputed US Federal Litigation (July 2026) |
However, the Lepu complaint highlights systemic operational vulnerabilities within consultant-driven strategies. Lepu alleged that Zhang integrated four associates into the project who maintained concurrent employment at competing Chinese firms, giving them direct access to sensitive pipeline intelligence.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
