GSK strikes $12 billion drug portfolio deal with Hengrui Pharma
GSK PLC on Monday said it has teamed up with China’s Jiangsu Hengrui Pharmaceuticals Co Ltd in a deal worth up to $12 billion to develop 12 medicines.
The London-based drug maker said the deal will add ‘significant new growth opportunities to the company beyond 2031’.
The treatments will complement GSK’s respiratory, immunology & inflammation and oncology pipeline, the firm said.
The agreement includes an exclusive worldwide licence, excluding mainland China, Hong Kong, Macau and Taiwan, for a ‘potential best-in-class’ PDE3/4 inhibitor, which is in clinical development for the treatment of chronic obstructive pulmonary disease as an ‘add-on maintenance treatment, irrespective of background therapy’.
The drug is called HRS-9821.
‘The addition of HRS-9821 supports GSK’s ambition to treat patients across the widest spectrum of COPD by including those who face continued dyspnoea (shortness of breath) or who are unlikely to receive inhaled corticosteroids or biologics, based on their disease profile,’ the company said.
GSK will pay $500 million in upfront fees across the agreements. The total value of success-based development, regulatory and commercial milestone payments to Hengrui Pharma is around $12 billion, if all programmes are optioned and all milestones achieved.
Hengrui Pharma also will receive tiered royalties on global product net sales, excluding mainland China, Hong Kong, Macau and Taiwan.
The Chinese firm will lead the development of the 11 programmes in addition to HRS-9821 up to the the completion of phase one trials, including with patients outside of China.
GSK will have the exclusive option to further develop and commercialise each programme worldwide at the end of phase one or earlier.
‘We’re delighted to announce these exciting agreements with Hengrui Pharma which complement our already-extensive pipeline,’ said GSK Chief Scientific Officer Tony Wood.
‘This deal reflects our strategic investment in programmes that address validated targets, increasing the likelihood of success, and with the option to advance those assets with the greatest potential for patient impact.’
Shares in GSK were up 1.4% at 1,412.50 pence early Monday morning in London. Jiangsu Hengrui Pharmaceuticals jumped 18% to HK$80.00 in Hong Kong late Monday. It added 10% to ¥62.04 in Shanghai.
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