GSK Inks $12 Billion Deal with Hengrui Pharma, Bolstering COPD Portfolio

GSK has significantly expanded its respiratory disease pipeline through a major collaboration with China's Hengrui Pharma. The deal, valued at up to $12 billion, encompasses 12 drug programs and strengthens GSK's position in the chronic obstructive pulmonary disease (COPD) market.

Deal Structure and Financial Terms

Under the agreement, GSK will pay Hengrui Pharma $500 million upfront, with the potential for up to $12 billion in additional development, regulatory, and commercial milestone payments. The collaboration spans up to 12 drug programs, with Hengrui leading development through Phase 1 trials. GSK will then have the exclusive option to advance promising candidates and commercialize them outside of Greater China.

The deal's structure allows for flexibility, with each program having its own financial terms. Hengrui stands to receive tiered royalties on ex-China sales for successfully commercialized products.

HRS-9821: A Novel PDE3/4 Inhibitor for COPD

At the forefront of this collaboration is HRS-9821, a dual PDE3/4 inhibitor that has shown promise in early clinical and preclinical studies. The compound has demonstrated potent bronchodilation and anti-inflammatory effects, key mechanisms in COPD treatment.

GSK's Chief Scientific Officer, Tony Wood, Ph.D., highlighted the strategic importance of HRS-9821, stating that it "supports GSK's ambition to treat patients across the widest spectrum of COPD by including those who face continued shortness of breath or who are unlikely to receive inhaled corticosteroids or biologics, based on their disease profile."

Expanding Beyond COPD

While COPD remains a focal point, the GSK-Hengrui collaboration extends beyond respiratory diseases. The additional programs, though not specifically detailed, are said to complement GSK's pipeline in respiratory, immunology and inflammation (RI&I), and oncology.

This deal marks another significant milestone for Hengrui Pharma, following its recent $1.29 billion Hong Kong IPO and a separate $200 million upfront payment from Merck & Co. for rights to a Phase 2 heart disease medication. Frank Jiang, Hengrui's Chief Strategy Officer, emphasized the importance of the collaboration, stating, "This strategic collaboration with GSK marks yet another significant milestone in Hengrui's globalization journey and our mission to innovate and deliver higher-quality, cutting-edge therapies for patients worldwide."