Hengrui Pharma's $1.1B Deal with Glenmark Marks Latest Move in ADC Market

Jiangsu Hengrui Pharmaceuticals has inked a potential $1.1 billion licensing agreement with Glenmark Pharmaceuticals, signaling another major development in the increasingly competitive antibody-drug conjugate (ADC) market. The deal centers on trastuzumab rezetecan, Hengrui's HER2-targeted ADC positioned as a rival to AstraZeneca and Daiichi Sankyo's blockbuster Enhertu.

Deal Structure and Market Focus

The agreement, announced on September 24, 2025, grants Glenmark certain rights to trastuzumab rezetecan in emerging markets. The deal structure includes an $18 million upfront payment, with the potential for up to $1.09 billion in regulatory and commercial milestones, plus sales-based royalties. Notably, the partnership excludes major markets such as the United States, Canada, Europe, Japan, and greater China.

Jo Feng, president of Hengrui Pharma, emphasized the strategic importance of the collaboration, stating, "This collaboration with Glenmark is a significant step in Hengrui's ongoing strategy to deepen its presence in emerging markets." For Glenmark, the deal aligns with its ambitions to expand its oncology pipeline, as noted by Glenn Saldanha, chairman and managing director of Glenmark Pharmaceuticals.

Trastuzumab Rezetecan: A Potential Enhertu Competitor

Hengrui's trastuzumab rezetecan is being positioned as a direct competitor to Enhertu, which generated $3.75 billion in global sales in 2024 and $2.29 billion in the first half of 2025. Both ADCs utilize trastuzumab as the antibody guide and an exatecan derivative as the toxic payload. Hengrui claims that rezetecan's high membrane permeability enables a bystander killing effect, potentially enhancing antitumor efficacy.

The drug has already gained approval in China for second-line non-small cell lung cancer with HER2-activating mutations, with a breast cancer application under review. Additionally, the FDA has granted orphan drug designation for trastuzumab rezetecan in combination with Hengrui's PD-L1 inhibitor adebrelimab and chemotherapy for stomach cancer.

Hengrui's Expanding Pipeline and Recent Deals

This latest agreement is part of a series of significant deals for Hengrui. The company recently entered into a potential $12 billion biobucks deal with GSK, covering up to 12 assets, and a lipoprotein(a) cardiovascular partnership with Merck & Co. that could be worth nearly $2 billion.

Hengrui's ADC pipeline extends beyond HER2, targeting other popular markers such as TROP2, Nectin-4, Claudin 18.2, HER3, and CD79b. These targets are also being pursued by major pharmaceutical companies, including Gilead Sciences, Pfizer, Astellas, and Roche, highlighting the intense competition in the ADC space.