GSK and Hengrui unveil development deal worth up to $12bn

(Sharecast News) - GSK has entered into a partnership with Chinese pharmaceutical outfit Hengrui Pharma to jointly develop up to 12 medicines, in a deal that could be worth up to $12bn. The British company said in a statement on Monday that the agreement provides it with new growth opportunities beyond 2031.

Hengrui will lead the development of 12 programmes across respiratory, immunology and inflammation (RI&I) and oncology up to completion of phase I trials, including in patients outside of China. GSK will then have the exclusive option to further develop and commercialise each programme worldwide if it wants.

The agreement will see GSK pay $500m in upfront fees across the agreements, though the potential total value of future success-based development, regulatory and commercial milestone payments to Hengrui is $12bn. Hengrui will also receive tiered royalties on sales.

The deals include an exclusive worldwide licence for a PDE3/4 inhibitor (currently known as HRS-9821) in clinical development for the treatment of COPD as an add-on maintenance treatment. Early clinical and preclinical studies of HRS-9821 have shown promising results, GSK said.

"This deal reflects our strategic investment in programmes that address validated targets, increasing the likelihood of success, and with the option to advance those assets with the greatest potential for patient impact," said GSK's chief scientific officer Tony Wood.