Major Pharma BD Deals: Hengrui-BMS $15.2B Alliance, Lilly's $2.25B AI Gene Editing Bet, and Bayer's Up-to-$2.45B Acquisition of Perfuse Therapeutics

Recently, several major collaborations have been reached in the pharmaceutical field.

Lilly Spends $2.25 Billion on AI Gene Editing

On May 12, Hengrui Pharma and Bristol-Myers Squibb (BMS) announced that they had reached a global strategic collaboration and licensing agreement.Jointly advance 13 early-stage projects covering oncology, hematology, and immunology, to accelerate the R&D of innovative drugs and benefit patients worldwide. This dealPotential total transaction value could reach approximately USD 1.52 billion。

Screenshot source: Hengrui Pharma Official WeChat

This collaboration agreement includes four oncology and hematology projects from Hengrui Pharma, four immunology projects from BMS, and five innovative projects jointly developed by both parties leveraging Hengrui's R&D engine and diversified innovative technology platforms. Hengrui Pharma has the option to co-develop specific projects and the opportunity to collaborate with BMS on specific commercial activities globally.

Under this collaboration framework, BMS has obtained the global exclusive rights (excluding mainland China, Hong Kong Special Administrative Region, and Macao Special Administrative Region) to the aforementioned Hengrui Pharma-originated projects as well as co-development projects based on Hengrui's platform. Hengrui Pharma has secured the exclusive rights to the aforementioned BMS-originated projects in mainland China, Hong Kong Special Administrative Region, and Macao Special Administrative Region, while BMS retains rights in all other regions outside these areas. Hengrui Pharma will take full responsibility for the early clinical development of the aforementioned projects, accelerating clinical proof-of-concept.

The agreement reached this time aligns with the synergistic innovation strategies of BMS and Hengrui, demonstrating both parties' continued commitment to advancing scientific innovation through collaboration in areas of significant and unmet medical needs. Leveraging BMS’s differentiated R&D strengths, global clinical development capabilities, regulatory expertise, and commercialization scale, along with Hengrui Pharma’s drug research engine, technology platforms, and highly efficient early-stage research capabilities, this collaboration will accelerate the advancement of a series of high-value projects.

According to the terms of the agreement,BMS will pay Hengrui Pharma up to 9.5 billion US dollars in relevant payments, including a 6-billion-US-dollar upfront payment, a 1.75-billion-US-dollar first anniversary payment, and a conditional second anniversary payment of 1.75 billion US dollars in 2028. The potential total transaction value of the agreement could reach approximately 15.2 billion US dollars.(Including the exercise of the option to co-develop projects and all projects achieving corresponding development, registration, and commercialization milestones). In addition, Hengrui Pharma has the right to collect tiered sales royalties from BMS based on the product's net sales (excluding mainland China, the Hong Kong Special Administrative Region, and the Macao Special Administrative Region).

The transaction is subject to approval by relevant regulatory authorities under the U.S. Hart-Scott-Rodino Antitrust Improvements Act and satisfaction of other customary closing conditions. Both parties expect the agreement to be completed in the third quarter of 2026.

Lilly Spends $2.25 Billion on AI Gene Editing

Global pharmaceutical giant Eli Lilly dropped a bombshell that shook the biopharmaceutical circle: a multi-project strategic R&D collaboration with AI biotechnology company Profluent to jointly develop AI-designed next-generation gene editing tools.Total milestone payments up to $2.25 billion。

Two hefty bets on the AI gene-editing track within three months, and this time, the collaboration partner is a star startup founded just four years ago that designs proteins from scratch using AI. Behind this astronomical deal lies an industry-level signal:AI pharmaceuticals have completely moved beyond the初级阶段 of "target discovery and molecule screening.", officially entering the core battlefield of gene therapy in the biopharmaceutical industry. The AI arms race among global pharmaceutical companies has now reached a fever pitch in the deep waters.

According to the cooperation agreement, Profluent will design and optimize customized recombinases for multiple genomic targets of Eli Lilly, enabling precise editing of kilobase-level DNA fragments.Lilly has obtained the global exclusive license for these editing tools, responsible for the full process from preclinical development, clinical trials to commercialization. Profluent will receive an undisclosed upfront payment and R&D funding, as well as up to $2.25 billion in development and commercialization milestone payments, plus royalties on future product sales.

In simple terms, Eli Lilly spent $2.25 billion to purchase the entry ticket for AI-reconstructed gene editing industry. This is also Lilly's second major investment in the AI recombinase track after reaching a $1.12 billion collaboration with Seamless Therapeutics in January, revealing its ambition for the next generation of gene therapy.

Bayer to Acquire Perfuse Therapeutics for Up to $2.45 Billion

Recently, Bayer reached an agreement to acquire Perfuse Therapeutics, a company specializing in ophthalmic disease drug development, for up to $2.455 billion. This pharmaceutical company is developing a promising glaucoma treatment drug, and this transaction marks Bayer's largest acquisition in recent years.

The German pharmaceutical and agricultural group said on Wednesday that the acquisition of San Francisco-based Perfuse would complement its own R&D pipeline for new drugs and further consolidate its business layout in the ophthalmology field.

Eylea, Bayer's top-selling ophthalmology drug last year, is now facing significant pricing pressure following the expiration of its patent.

Bayer introduced that the core candidate drug of Perfuse is a glaucoma and diabetic retinopathy therapy under research, currently in the mid-stage clinical trial phase.

This drug is expected to become one of the first treatment options that can improve these two eye diseases from the root cause.

Payment Method: Bayer will initially pay 300 million US dollars, and the remaining acquisition amount will be paid in installments based on the achievement of milestone targets such as R&D progress, regulatory approvals, and commercial performance.

A company spokesperson said that this acquisition is Bayer's largest acquisition since its $4 billion purchase of AskBio in 2020. Large pharmaceutical companies often acquire smaller ones to supplement their self-developed pipelines and fill the performance gap left by expiring patents.

But Bayer has long prioritized debt reduction as its primary goal. Even as its core drugs — the anticoagulant Xarelto and the ophthalmic drug Eylea — successively faced patent expirations, the company has largely remained on the sidelines of the recent wave of industry mergers and acquisitions.

Bayer's $63 billion acquisition of Monsanto in 2018 left the company with massive debt and litigation disputes; in recent years, the company has focused on cutting costs and streamlining operations.

Following the acquisition of AskBio, Bayer also acquired Vividion Therapeutics for up to $2 billion and KaNDy Therapeutics for up to $875 million; however, recent acquisitions have mostly focused on early-stage drug candidate projects that have not yet entered human clinical trials.

Bayer's pharmaceutical division head Stefan Oelrich revealed in an interview last month that the company was already in talks for several potential M&A deals at that time.

UCB Acquires Candid Therapeutics for $2.2 Billion

On May 4, 2026, Belgian pharmaceutical giant UCB announced the acquisition of Candid Therapeutics for up to $2.2 billion, with an upfront payment of $2 billion. This "lightning-fast" exit deal shook the global biopharmaceutical industry as Candid Therapeutics, established for less than two years, was fully acquired, delivering multiple returns for investors. The core highlight of this transaction is an innovative molecule from China — EpimAb’s BCMA T-cell engager (TCE), whose unique FIT-Ig platform design demonstrates best-in-class potential and safety, becoming the "key" that attracted UCB's interest. This marks the successful journey of the "NewCo" overseas model co-created by Chinese and American venture capital, a Chinese innovative molecule, and a top-tier U.S. entrepreneurial team, completing a full commercial cycle from incubation to high-value acquisition, offering a new pathway for the globalization of China's innovative drugs.

GSK Partners with Suzhou Shian Biotech for a $1.05 Billion Collaboration

On May 6, 2026, GSK announced a collaboration with Suzhou Shian Biotech to acquire the global development and commercialization rights for SA030, an siRNA drug targeting ALK7, in a deal worth up to $1.005 billion. This marks GSK's eighth investment in a China-based innovative drug project since 2023, with upfront payments and milestone totals reaching approximately $20 billion. In contrast, GSK has disclosed only five non-China collaborations, totaling around $5 billion. GSK’s continued investment reflects a deep recognition of China’s innovative drug R&D capabilities and asset value, with China’s innovative drug assets now a key variable in determining the future strategic layout of multinational pharmaceutical companies.

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