Potential Deal Exceeds $10 Billion: Hengrui Pharmaceuticals Secures Major Overseas Licensing Agreement

By Wang Jinghan and Li Mengyang, China Securities Journal

July 28, 2025 – 12:26, Beijing

On July 28, Hengrui Pharmaceuticals announced that it has reached an agreement with GlaxoSmithKline Intellectual Property (No.3) Limited and GlaxoSmithKline Intellectual Property (No.4) Limited (collectively "GSK") to out-license the global exclusive rights (excluding China) to its HRS-9821 program, along with the exclusive option to license up to 11 additional programs globally (excluding China). Under the terms of the agreement, Hengrui Pharmaceuticals will receive an upfront payment of USD 500 million, including the rights to its PDE3/4 inhibitor. If all options are exercised and all development, regulatory, and commercial milestones are met across the programs, the total potential deal value could reach approximately USD 12 billion. According to the announcement, HRS-9821 is a potential best-in-class PDE3/4 inhibitor currently in clinical development, aimed at treating chronic obstructive pulmonary disease (COPD).

So far this year, the pace of overseas licensing deals for Chinese innovative drugs has accelerated, with multiple agreements concluded in rapid succession. On June 2, Hansoh Pharma announced that it had granted Regeneron Pharmaceuticals, Inc. exclusive overseas rights to its investigational GLP-1/GIP dual receptor agonist HS-20094. Earlier, on May 30, CSPC Pharma disclosed that it was in discussions with several independent third parties regarding three potential transactions involving licensing and collaboration in the development, manufacturing, and commercialization of selected products.

According to data from Founder Securities, the total transaction value of China's overseas innovative drug licensing deals in 2024 rose by 26% year-on-year. In the first half of 2025 alone, upfront payments have already exceeded USD 2.5 billion, with the total transaction value surpassing USD 50 billion.

Excerpt from China Securities Journal, July 28, 2025