China's 'Innovation Pharma Leader' Hengrui Medicines Strikes $15.2B Global Deal with BMS

　　【PharmaNet Corporate NewsOn May 12, Hengrui Pharma announced that the company had reached a global strategic collaboration and licensing agreement with BMS to jointly advance 13 early-stage projects covering oncology, hematology, and immunology. This cooperation agreement includes four Hengrui oncology and hematology projects, four BMS immunology projects, and five innovative projects jointly developed by both parties leveraging Hengrui's R&D engine and diversified innovative technology platforms.
 

According to the agreement, BMS will pay Hengrui up to US$950 million in relevant payments, namely a down payment of US$600 million, a first anniversary payment of US$175 million, and a second conditional anniversary payment of US$175 million in 2028. The potential total transaction amount of the agreement can reach approximately US$15.2 billion. In addition, Hengrui is entitled to collect corresponding tiered sales royalties from BMS based on the net sales of the product (excluding mainland China, the Hong Kong Special Administrative Region, and the Macao Special Administrative Region).
 

The industry believes that this cooperation is a landmark event for Hengrui Pharma's BD strategy, shifting from "one-way output" to "two-way empowerment." It is reported that in recent years, Hengrui Pharma's internationalization strategy has evolved from the traditional "product licensing" model to a diversified matrix that includes platform output, equity co-construction, and two-way licensing. Through multi-dimensional external cooperation, the company is deeply embedding its R&D engine into the global innovation ecosystem to accelerate asset monetization while introducing high-quality external assets to enrich its pipeline in China.
 

According to incomplete statistics, since 2023, Hengrui Pharma has completed at least 12 overseas business expansion transactions, with a potential total transaction value exceeding 27 billion US dollars.
 

On July 28, 2025, Hengrui Pharma and GSK reached an agreement to grant GSK the global exclusive rights (excluding mainland China, Hong Kong SAR, Macao SAR, and Taiwan region of China) for the HRS-9821 project, as well as the exclusive option for global exclusive licenses for up to 11 projects (excluding mainland China, Hong Kong SAR, Macao SAR, and Taiwan region of China) under a paid license. GSK will pay Hengrui Pharma an upfront payment of 500 million US dollars.
 

The two parties will jointly develop up to 12 innovative drugs. If all projects are opted-in and all milestones are achieved, Hengrui Pharma will be eligible to receive potential total milestone payments of approximately USD 12 billion based on successful development, regulatory approval, and sales milestones in the future.
 

On March 25, 2025, Hengrui Pharma announced a collaboration agreement with Merck regarding its oral small molecule program targeting lipoprotein(a) [Lp(a)] (including the lead compound named HRS-5346).
 

According to the terms of the agreement, Hengrui Pharma has granted Merck the exclusive rights to develop, manufacture, and commercialize HRS-5346 outside of Greater China for a fee. The company will receive an upfront payment of 200 million US dollars and is eligible to receive milestone payments of up to 1.77 billion US dollars related to specific development, regulatory, and commercialization milestones.
 

On April 7, 2025, Hengrui Pharma announced that it has granted Merck the exclusive commercialization rights in mainland China (excluding Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan region of China) for SHR7280, a self-developed Class 1 new drug and oral small-molecule gonadotropin-releasing hormone (GnRH) receptor antagonist (with indications covering medically assisted reproduction and gynecology).
 

　　……
 

Currently, frequent outbound licensing (BD) has also become the core engine of Hengrui Pharma's internationalization strategy and an important part of its performance growth. It is reported that by 2025, related revenues have reached 3.392 billion yuan.
 

Overall, intensive BD collaborations have brought Hengrui Pharma considerable cash flow and international prestige. The industry anticipates that, in the future, relying on the four drivers of pipeline + technology + BD + globalization, it will accelerate into a new phase of development characterized by "innovation-driven progress and global presence."
 

　　Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.