Sinopharm Biologics Inks $1.9B Deal with AstraZeneca for PDE3/4 Inhibitor TQC3721

▎Armstrong

On July 8, 2026, Chia Tai Tianqing Pharmaceutical Group announced that it had licensed the global rights to its PDE3/4 inhibitor TQC3721, excluding China, to AstraZeneca. The deal includes a $200 million upfront payment, potential milestone payments totaling up to $1.9 billion, and tiered sales royalties in the high double-digit percentages.

TQC3721 is a differentiated PDE3/4 inhibitor independently developed by Sino Biopharm. It demonstrates significantly stronger inhibitory activity against the PDE3 and PDE4 families than ensifentrine (a product acquired by Merck & Co. through its $10 billion acquisition of Verona Pharma), with superior selectivity and potency, enabling it to cover a broader population of COPD patients. Currently in Phase III clinical trials in China, its development progress ranks second globally.

The upfront payment for the licensing of Chia Tai Tianqing’s PDE3/4 inhibitor has matched the new record for a single small-molecule novel drug’s overseas licensing deal. Previously, the upfront payment for the licensing agreement between Hengrui Medicine’s LPA small-molecule inhibitor and Merck & Co. was also $200 million.

Summary

Chia Tai Tianqing Pharmaceutical Group has been particularly active in business development (BD). While achieving continuous breakthroughs in out-licensing, it is also one of the few domestic pharmaceutical companies actively pursuing mergers and acquisitions. The company acquired Lixin Pharmaceutical for $950 million and Hygieia for RMB 1.2 billion, thereby enhancing its portfolio and technological platforms in antibodies, antibody-drug conjugates (ADCs), T-cell engagers (TCEs), and small nucleic acids. Furthermore, Chia Tai Tianqing has strategically invested in star biotechnology firms such as Insilico Medicine and Eddingpharm, continuously refining its open innovation ecosystem.