GSK Enters $12 Billion Alliance with China's Hengrui, Targeting COPD and Beyond

GSK has announced a major collaboration with Chinese biotechnology company Hengrui Pharma, potentially worth up to $12 billion. The deal, which includes a $500 million upfront payment, focuses initially on a promising COPD therapy and could expand to encompass a dozen medicines across respiratory, immunology, and oncology fields.

COPD Drug Takes Center Stage

The alliance's primary focus is HRS-9821, an experimental drug for chronic obstructive pulmonary disease (COPD) currently in Phase 1 testing. This inhalable medication targets PD3 and PD4 enzymes, mirroring the mechanism of Verona Pharma's recently approved Ohtuvayre. GSK believes HRS-9821 has "best-in-class" potential, with the added benefit of a dry-powder inhaler formulation, potentially offering advantages over Ohtuvayre's nebulizer delivery system.

Tony Wood, GSK's chief scientific officer, emphasized the strategic importance of the deal, stating, "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."

Expanding Horizons: Beyond COPD

While the COPD therapy headlines the collaboration, the agreement's scope is far broader. GSK has secured rights to potentially develop up to 11 additional therapies spanning respiratory illnesses, immune disorders, and cancer. This wide-ranging approach aligns with a growing trend in the pharmaceutical industry of sourcing innovative drug candidates from Chinese biotech firms.

The deal structure grants GSK rights outside of greater China and Taiwan, with Hengrui leading development through Phase 1 trials. GSK will then have the option to acquire most rights to these programs at the conclusion of early-stage testing or before.

China's Rising Influence in Global Pharma

This collaboration underscores the increasing importance of Chinese biotechnology in the global pharmaceutical landscape. Recent data from Jefferies investment bank reveals that one-third of the drug industry's licensing deal spending in the first half of 2025 involved China-originated drugs, a significant increase from previous years.

Frank Jiang, Hengrui's executive vice president and chief strategy officer, highlighted the deal's significance: "This strategic collaboration with GSK marks yet another significant milestone in Hengrui's globalisation journey and our mission to innovate and deliver higher-quality, cutting-edge therapies for patients worldwide."

The GSK-Hengrui alliance follows a series of similar partnerships between Western pharmaceutical giants and Chinese biotech firms, reflecting a broader industry trend towards leveraging China's rapidly growing research and development capabilities.