Hengrui Medicine Secures $12 Billion License-Out Deal with GSK for HRS-9821 and Up to 11 Pipeline Assets

　　【Pharmaceutical Network Corporate NewsOn the morning of July 28, Hengrui Pharma announced that the company had reached an agreement with GlaxoSmithKline Intellectual Property (No. 3) Limited and GlaxoSmithKline Intellectual Property (No. 4) Limited (hereinafter collectively referred to as "GSK"). Under the agreement, Hengrui Pharma will grant GSK the global exclusive rights (excluding mainland China, the Hong Kong Special Administrative Region, the Macao Special Administrative Region, and Taiwan, China) for the HRS-9821 project, as well as the exclusive option for global exclusive licenses for up to 11 projects (excluding mainland China, the Hong Kong Special Administrative Region, the Macao Special Administrative Region, and Taiwan, China) on a paid basis.
 

According to reports, HRS-9821 is a potential bic PDE3/4 inhibitor currently in clinical development for the treatment of chronic obstructive pulmonary disease (COPD) as an adjunctive maintenance therapy, regardless of prior treatment regimens.
 

According to the agreement, GSK will pay Hengrui Pharma an upfront payment of 500 million US dollars. If all projects are exercised and all milestones are achieved, Hengrui Pharma will be eligible to receive a potential total amount of approximately 12 billion US dollars based on successful development, registration, and sales milestone payments in the future.
 

In the current era of increasingly fierce competition in the global pharmaceutical industry, innovation has become the core driving force for pharmaceutical companies' development. As the "leading pharmaceutical company" in China, Hengrui Pharma has made frequent moves in the field of innovative drug licensing (license-out) in 2025, showcasing its strong R&D capabilities and international strategic layout.
 

In addition to this out-licensing deal, for instance, on March 25, 2025, Hengrui Pharma announced that it had entered into an exclusive licensing agreement with Merck & Co., Inc., Kenilworth, NJ, USA (known as MSD outside the United States and Canada) for its Lipoprotein(a) (Lp(a)) oral small molecule program, including a lead compound named HRS-5346. Under the agreement, Hengrui Pharma will grant MSD exclusive rights to develop, manufacture, and commercialize HRS-5346 globally outside Greater China for an upfront payment of $200 million. Hengrui Pharma is also eligible to receive up to $1.77 billion in milestone payments related to specific development, regulatory, and commercialization events, as well as royalties based on net sales of products derived from HRS-5346 if they are approved for marketing. The closing of this transaction is contingent upon obtaining clearance under the Hart-Scott-Rodino Antitrust Improvements Act in the United States and fulfilling other customary conditions, with the transaction expected to close in the second quarter of 2025.
 

Looking back at Hengrui Pharma's development in recent years, according to the prospectus released by the company in January this year, since 2018, it has successfully completed 12 outbound licensing deals, covering 15 molecules with a total transaction value of nearly 12 billion US dollars. From the early stage of licensing products to US-based One Bio, to collaborating with Bain Capital to establish an overseas company, Hercules, and licensing the GLP-1 product portfolio, Hengrui Pharma has continuously explored innovative models in the license-out field. Today, its partnerships with international pharmaceutical leaders such as Merck and GSK have further elevated its globalization strategy to new heights. These transactions not only brought substantial funds to Hengrui, which can be reinvested into R&D, but also enhanced its reputation and influence in the global pharmaceutical market, accelerating the worldwide implementation of its innovative achievements.
 

Looking ahead, Hengrui Pharma is expected to leverage its continuous innovation capabilities and proactive internationalization strategy to further strengthen its presence in the license-out sector, achieve more high-quality collaborations, bring more innovative drugs to patients worldwide, and at the same time, secure greater influence for China's innovative drug industry on the international stage.
 

As of the closing on July 27, Hengrui Pharma closed at RMB 56.40, down RMB 1.10, with a decrease of 1.91%, a turnover rate of 0.79%, a trading volume of 505,400 shares, and a turnover of RMB 2.874 billion.
 

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