Shanghai Fosun Pharmaceutical (Group) Co., Ltd. licenses its oral DPP-1 inhibitor for over $600 million to treat bronchiectasis and chronic obstructive pulmonary disease

8Moon11day,Fosun Pharmaannounced that its subsidiary, Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd., hasExpedition TherapeuticsEnter into a license agreement toXH-S004Globally(excluding mainland China, Hong Kong, and Macau)Grant of development, production, and commercialization rightsExpeditionFosun Pharma will retain all rights in the Chinese market.

According to the agreement,Expeditionwill pay Shanghai Fosun Pharmaceutical (Group) Co., Ltd. up to1.2hundred million US dollarsNon-refundable upfront payment, development milestone payments, with future payments based onXH-S004Based on the achievement of annual net sales in the licensed territory,由ExpeditionPay up to as agreed5.25hundred million U.S. dollarsmilestone payment for sales.

AboutXH-S004

XH-S004It is a small-molecule oral dipeptidyl peptidase independently developed by Fosun Pharma.1（DPP-1）inhibitor,DPP-1Enzymes play a key role in the inflammatory response, activating neutrophils to release serine proteases.(such as neutrophil elastase). By inhibitingDPP-1, reducing the activation of serine proteases, thereby decreasing airway inflammatory responses and interrupting the vicious cycle of infection and structural damage. Long-term inhibition can slow airway structural damage in patients with bronchiectasis, reduce the frequency of acute exacerbations, and improve quality of life.

The potential indications for this investigational drug include non-cystic fibrosis bronchiectasis, chronic obstructive pulmonary disease, etc. To date,XH-S004Used for the treatment of non-cystic fibrosis bronchiectasis in China is currently inIIPhase clinical trial stage, for the treatment of chronic obstructive pulmonary disease（COPD）within ChinaIbphase clinical trial stage. To date, there are no small molecule oral inhibitors with the same mechanism of action approved for marketing worldwide，XH-S004for potential first-in-class（First-in-Class）Drugs.

Preclinical studies of non-cystic fibrosis bronchiectasis show,XH-S004Can significantly reduce airway inflammation markers(such asIL-8, neutrophil elastase), slowing the progression of bronchiectasis. ChinaⅠPhase trials showed good tolerability,IIPhase trial（2025year6Monthly launch)will assess its impact on the frequency of exacerbations and lung function（FEV1）and quality of life（SGRQ(score)the improvement effect.

Preclinical models of chronic obstructive pulmonary disease show,XH-S004Can reduce lung parenchyma damage, decrease airway remodeling, and slow downFEV1Declining speed. ChinaⅠbPhase trial（2025year2(approved in month)Will assess its impact onCOPDPatient lung function, frequency of acute exacerbations, and inflammatory markers(For exampleIL-6, neutrophil count)The impact.

As of2025year7Moon, Fosun PharmaXH-S004the accumulated R&D investment of approximately0.72billion RMB, the total transaction amount is about R&D investment64times. After the announcement,Fosun PharmamedicineAStockandHStockStock prices rose respectively, indicating positive market recognition of the transaction by the capital markets。

Market Prospects

Non-cystic fibrosis bronchiectasis（NCFBE）Global prevalence approximately1.2%~5.0%, Asian countries(such as South Korea)Higher prevalence（9.1%）, China may be underestimated, with a higher actual burden. The prevalence rate among adults in China has reached1.3%~3.0%, the number of patients is estimated to be1000Ten thousand~2000within ten thousand, and significantly increases with age.

Current treatment options mainly rely on antibiotics, mucolytics, and bronchodilators, which only alleviate symptoms such as cough and sputum production, but cannot halt disease progression or reduce the risk of acute exacerbations: patients experience an average of annual acute exacerbations1.5~6Next, leading to progressive decline in lung function（FEV1Annual average decline50~100ml），5Annual mortality rate reached20%~30%. Lack of targeted therapies, existing drugs(such as macrolides, inhaled antibiotics)Limited efficacy, and long-term use may lead to drug resistance.XH-S004Expected to become the world's first targetedNCFBEDisease-modifying drugs for inflammatory mechanisms.

Chronic obstructive pulmonary disease（COPD）is the third leading cause of death globally,2023Annual market size exceeds150hundred million US dollars, approximately Chinese patients1hundred million people,40The prevalence rate among people aged above13.7%. Patients bear a heavy burden of disease in ChinaCOPDAnnual direct medical expenses exceed500billion, the average annual acute exacerbation per patient0.5~2Next, each increase in hospitalization costs reaches1.2Ten thousand yuan.

Current treatment methods mainly focus on symptom relief, such as bronchodilators（LAMA/LABA）inhaled corticosteroids（ICS）Only improves symptoms, unable to stop the progressive decline in lung function（FEV1Annual average decline30~50ml）. Approximately50%Patients experience at least one acute exacerbation per year, leading to increased hospitalization and mortality rates. Current anti-inflammatory medications(such as roflumilast)Limited efficacy and obvious side effects(such as diarrhea, weight loss)。XH-S004Expected to becomeCOPDThe first oral drug targeting neutrophilic inflammation in the field, filling the gap in "reducing acute exacerbations and slowing lung function decline."

Currently no similar productsDPP-1Inhibitor approved,XH-S004If successfully listed, it will gain a first-mover advantage.