BD transactions reappear in the respiratory field: why is the billion-dollar track hot? what’s the prospect of biologics?

Another BD (Business Development) deal has been officially announced in the domestic respiratory field.

On the evening of September 12,Baiyang Medicine(301015.SZ) announced that the company has signed a strategic cooperation agreement with Tianjin Jikun Pharmaceutical Technology Co., Ltd. Baiyang Pharmaceutical strategically invested in Jikun Pharmaceutical, intending to hold 24% of its equity, thereby securing all rights to Jikun Pharmaceutical's Class 1 innovative drug for treating pulmonary fibrosis. Meanwhile, Baiyang Pharmaceutical enjoys the right of first refusal under equal conditions for the global compound rights of all products held by Jikun Pharmaceutical.

Although the aforementioned BD did not disclose the specific transaction amount, the respiratory innovative drugs involved in this deal have attracted significant attention in the industry.

Compared to hot fields like oncology and weight loss, respiratory diseases such as asthma and COPD have not garnered as much attention in the pharmaceutical industry. Thanks to an increase in BD transactions over the past two years, the respiratory field is gradually stepping into the industry spotlight. Based on publicly available information, several large BD deals have emerged in China's respiratory sector, with sellers includingHengrui Medicine(600276.SH; 01276.HK), Harbour BioMed (01242.HK),Fosun Pharma(600196.SH; 02196.HK), etc., the value of some respiratory product pipelines has been realized through BD.

In July this year, Hengrui Medicine, the "elder brother" of China's pharmaceutical industry, officially announced a collaboration with GSK. Hengrui granted GSK the global exclusive rights to its new COPD drug, the PDE3/4 inhibitor HRS-9821, along with global options for 11 early-stage projects, in exchange for an upfront payment of $500 million. This deal, with a potential total value exceeding $10 billion, has directly brought significant attention to the PDE3/4 target. The industry is now watching to see which domestic pharmaceutical company might secure a new BD order.

As early as November 2023, Italian pharmaceutical company Chiesi partnered with a domestic innovative drug companyHaisco(002653.SZ) has signed the HSK31858 Tablet Licensing Agreement, obtaining the rights to this drug outside of Greater China (including Hong Kong, Macao, and Taiwan). The upfront payment for this transaction is $13 million, with Haisco potentially receiving up to a total of $462 million and earning royalties of up to double-digit percentages of actual annual net sales. Research data shows that HSK31858 can significantly reduce the risk of acute exacerbations in patients with bronchiectasis.

On September 12, during the 2025 Chinese Thoracic Society Annual Meeting (CTS 2025), Hagen Deng, General Manager and President of Chiesi China, told The Paper that "We will assist Haisco's innovative Chinese product to expand into overseas markets. In the future, we will strengthen our local BD business development capabilities," hoping that the headquarters will recognize the innovative vitality and dynamism of the Chinese market and amplify Chiesi BD team’s influence in China.

Regarding the future BD strategy of Chiesi in China, Stefano, Senior Vice President of Chiesi Group and head of business and corporate development, said in an interview with domestic media in March this year: "In the field of respiratory diseases, we are focusing on broader opportunities, including all stages from drug discovery to commercialization. We adopt flexible cooperation models and can independently or jointly carry out the commercial operations of relevant products in China."

In BD deals, domestic pharmaceutical companies typically retain the China rights to innovative drug pipelines, which means that in the future, domestic companies also have the potential to claim a share of the respiratory market in China. Data from Zhiyan Consulting shows that by 2024, the market size of China's respiratory system drug industry will be approximately $12.8 billion.

Behind the billion-dollar track is a vast patient population. The "Guidelines for the Prevention and Treatment of Bronchial Asthma (2024 Edition)" released in March 2025 shows that the prevalence of asthma in people aged 20 and above in China is 4.2%, with approximately 45.7 million asthma patients. The survey results of the "China Adult Pulmonary Health Study" indicate that the number of COPD patients in China is nearly 100 million.

In the domestic respiratory market, in addition to local innovative pharmaceutical companies, there are also multinational pharmaceutical players such as AstraZeneca, Sanofi, GlaxoSmithKline, and Chiesi, with products ranging from commonly used medications represented by inhalation preparations to more cutting-edge biologics.

On September 12, Chiesi announced the official commercial launch of Beclomethasone/Formoterol Inhalation Powder in China. This is currently the only ultra-fine particle ICS (Inhaled Corticosteroid)/LABA (Long-Acting Beta-2 Agonist) combination dry powder inhaler, offering a new treatment option for asthma patients.

Biological agents are one of the current research and development directions for respiratory diseases. In August this year, AstraZeneca's first respiratory biological agent in China, Benralizumab Injection, received formal approval in China for its new indication for the maintenance treatment of severe eosinophilic asthma (SEA) in children (6 to <12 years old). This drug belongs to the anti-IL-5R biological agents and has been previously approved in China for maintenance treatment of SEA in adults and adolescents aged 12 years and above.

Could Biologics Replace Inhalers in the Future? A domestic respiratory expert told reporters during CTS 2025 that respiratory diseases such as asthma and COPD are chronic conditions that currently cannot be completely cured and often require long-term medication. For the treatment of many respiratory diseases, inhaled medications remain the cornerstone, with higher-priced biologics serving as a supplement. As more research progresses, biologics may become a first-line treatment option in the future, but for now, they cannot replace inhalers.