Multiple Licensing Deals Closed: Chinese Innovative Drugs Expand Overseas with New Milestones

　　【Pharmaceutical Network Industry Dynamics】In the global pharmaceutical industry, the innovative drug sector is undergoing profound changes and development. In recent years, China's innovative drug companies have been actively expanding into overseas markets, continuously exploring new cooperation models and development paths, and gaining prominence on the international stage. Recently, the significant collaboration between Hengrui Pharma and GSK, as well as the strategic partnership between Novatim and ERIGEN LLC, has injected new vitality into the globalization of China’s innovative drugs.
 

On July 28, Hengrui Pharma announced that it had reached a significant agreement with GSK. Under the agreement, Hengrui Pharma will grant GSK the global exclusive rights to the HRS-9821 project and the exclusive option for global exclusive licenses to up to 11 projects, for which Hengrui Pharma is eligible to receive a potential total amount of approximately $12 billion.
 

Among them, HRS-9821 is a potential best-in-class PDE3/4 inhibitor currently in clinical development for the treatment of chronic obstructive pulmonary disease (COPD) as an adjunctive maintenance therapy, without restrictions based on prior treatment regimens. As the start of the collaboration, GSK will pay Hengrui Pharma an upfront payment of 500 million US dollars. If all projects are opted into and all milestones are achieved, Hengrui will be eligible to receive future potential total payments of approximately 12 billion US dollars based on successful development, regulatory, and sales milestones. This collaboration not only highlights Hengrui Pharma's strong capabilities in innovative R&D but also reflects international pharmaceutical companies' high recognition of China's innovative drug projects. By partnering with GSK, Hengrui Pharma’s relevant products are expected to leverage GSK’s global resources and channels to reach the international market more quickly, bringing new treatment options to patients worldwide.
 

In addition to Hengrui Pharma, on July 22, Novatim also announced a significant strategic partnership. Novatim has entered into a collaboration with the U.S.-based biopharmaceutical company ERIGEN LLC, and both parties signed an exclusive overseas licensing agreement for Novatim's self-developed, world-first dual-target CAR-T cell therapy product KQ-2003 (targeting BCMA/CD19) with parallel enhancement.
 

This collaboration covers global rights outside Greater China, granting ERIGEN exclusive development, registration, and commercialization rights for the product in the relevant regions. Additionally, the agreement authorizes ERIGEN LLC to utilize the core structure and sequence of KQ-2003 to develop a "universal CAR-T cell therapy," while Novatim will retain all rights to this universal product within Greater China.
 

From the cooperation terms, Novatim will receive a near-term development milestone payment of 15 million US dollars and is eligible to obtain milestone payments totaling up to 1.32 billion US dollars during the R&D, registration, and commercialization phases. In addition, based on the net sales of KQ-2003 in the authorized region, Novatim will also receive sales royalties of up to 800 million US dollars. KQ-2003 is currently undergoing Phase 1b clinical trials in China. This collaboration not only provides financial support for Novatim but, more importantly, leverages ERIGEN's capabilities to accelerate the product’s overseas market layout and commercialization process, with the hope of bringing this innovative CAR-T therapy to more patients worldwide.
 

These two major outbound events of China's innovative drugs that occurred in July vividly demonstrate the vigorous development of China's innovative drug industry. In recent years, with the continuous increase in R&D investment by domestic pharmaceutical companies, the gradual enhancement of R&D capabilities, and the ongoing optimization of the policy environment, more and more Chinese innovative drugs have begun to attract international market attention. Through collaborations with international pharmaceutical companies, domestic firms can integrate global resources, improve R&D efficiency, and accelerate the internationalization of their products.
 

Looking ahead, as more similar collaborations advance, China's innovative drugs are expected to occupy a more significant position in the global pharmaceutical market. This will not only bring new development opportunities for pharmaceutical companies in China but also provide more high-quality and effective treatment options for patients worldwide, driving the progress of global healthcare.
 

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