Hengrui Pharma Expands Global Reach with $1.1B ADC Deal

Jiangsu Hengrui Pharmaceuticals has announced a potential $1.1 billion licensing agreement with Glenmark Pharmaceuticals, marking another significant step in the Chinese company's global expansion strategy. The deal centers around trastuzumab rezetecan, Hengrui's antibody-drug conjugate (ADC) designed to rival AstraZeneca and Daiichi Sankyo's blockbuster drug Enhertu.

Strategic Licensing Agreement

The licensing agreement grants Glenmark certain rights to trastuzumab rezetecan, focusing primarily on emerging markets. The deal excludes major pharmaceutical markets such as the United States, Canada, Europe, Japan, and greater China. Under the terms of the agreement, Hengrui will receive an upfront payment of $18 million, with the potential for up to $1.09 billion in regulatory and commercial milestones, plus sales-based royalties.

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. We look forward to working together to enhance the accessibility of innovative therapies and to bring new hope to patients in more countries and regions."

Trastuzumab Rezetecan: A Potential Enhertu Competitor

Trastuzumab rezetecan is positioned as a direct competitor to Enhertu, which generated $3.75 billion in global sales last year 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's drug employs rezetecan, while Enhertu uses deruxtecan.

Hengrui highlights the potential advantages of its ADC, noting that rezetecan "has high membrane permeability, enabling a bystander killing effect, which further enhances the antitumor efficacy." The drug received approval in China in May 2025 for second-line non-small cell lung cancer with HER2-activating mutations, and a breast cancer application is currently under review by Chinese authorities.

Expanding ADC Portfolio and Global Partnerships

The deal with Glenmark is part of Hengrui's broader strategy to expand its global presence and develop a competitive ADC portfolio. The company's pipeline includes ADCs targeting other popular targets such as TROP2, Nectin-4, Claudin 18.2, HER3, and CD79b, positioning Hengrui as a significant player in the growing ADC market.

This licensing agreement follows several other major deals for Hengrui, including a potential $12 billion partnership with GSK and a cardiovascular collaboration with Merck & Co. worth nearly $2 billion. These strategic moves underscore Hengrui's ambition to become a global pharmaceutical powerhouse and its commitment to bringing innovative therapies to patients worldwide.