Chinese Innovative Biopharma Firms Secure Over $6 Billion in Upfront Payments from Recent BD Deals

　　【Pharmaceutical Network Industry DynamicsJune 3 News: Hansoh Pharma opened nearly 4% higher. As of 9:36, the stock rose by 3.85%, trading at HK$27, with a turnover of HK$1.9083 million.
 

On the news front, Hansoh Pharma announced that it has reached a licensing agreement with Regeneron, granting the latter exclusive global rights (excluding mainland China, Hong Kong, and Macao) to develop, manufacture, and commercialize HS-20094. Under the agreement, Hansoh Pharma will receive an upfront payment of $80 million, up to $1.93 billion in milestone payments, and royalties in the double-digit percentage. This collaboration aims to accelerate the global research, development, and commercialization process of HS-20094.
 

Data shows that HS-20094 is a GLP-1/GIP dual receptor agonist under research. It has successfully completed multiple Phase II trials with positive efficacy and safety data, and is currently undergoing Phase III clinical trials in China. The Board believes that entering into this licensing agreement is in the overall best interests of the company and its shareholders. The company will also take this opportunity to maximize the scientific and commercial value of the group's technology platform.
 

Reviewing 2020 - 2024, with the increase in R&D investment and the enhancement of R&D capabilities by innovative drug companies in China, BD transactions have occurred frequently. The total amount has increased from $9.2 billion to $52.3 billion, and upfront payments have risen from $600 million to $4.1 billion. Since early 2025, the total amount of overseas transactions for innovative drugs in China has reached $45.5 billion, with upfront payments of $2.2 billion. In May 2025, the innovative drug industry still saw frequent BD transactions, involving pharmaceutical companies such as 3SBIOINC and CSPC.
 

CSPC announced on May 30 that the company is in talks with several independent third parties regarding three potential licensing deals. These deals involve the development, production, and commercialization rights of an Epidermal Growth Factor Receptor Antibody-Drug Conjugate (EGFR-ADC) and other drugs developed based on its proprietary technology platform. According to the announcement, each deal could bring CSPC upfront payments, development, and commercialization milestone payments totaling up to approximately $5 billion (equivalent to RMB 36 billion). One of the deals has reached the later stages and is expected to be completed by June 2025. The announcement stated that all three potential deals focus on product licensing and technology platform cooperation, but the specific counterparties have not been disclosed. CSPC emphasized that as of the announcement date, the final terms of the potential deals have not been determined, and no legally binding agreements have been signed, meaning the deals still carry uncertainties. Market speculation widely suggests that the core product in the advanced stage of negotiation is CSPC's EGFR-ADC drug SYS6010. In May 2025, SYS6010 received its third Fast Track designation from the U.S. FDA, covering three major indications: non-squamous NSCLC, squamous NSCLC, and EGFR mutation resistance.
 

3SBIOINC announced on May 20 that it has granted Pfizer, a leading global pharmaceutical company, the exclusive rights for the development, production, and commercialization of its self-developed PD-1/VEGF bispecific antibody SSGJ-707 worldwide (excluding mainland China). According to the licensing agreement, Pfizer will pay a non-refundable upfront payment of $1.25 billion, as well as up to $4.8 billion in milestone payments and double-digit percentage royalties on sales. Huaxi Securities noted that 3SBIOINC controls 80.88% of the equity in 3SBio Group; meanwhile, all proceeds from this licensing deal for SSGJ-707 will be distributed with 70% going to Shenyang 3SBio and 30% to 3SBio Group. The bank expects Pfizer to pay the upfront payment within the year, boosting 3SBIOINC's pre-tax profits by approximately $1.175 billion; additionally, potential milestone payments will be received in the future.
 

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