GSK Strikes Landmark $12 Billion Deal with Hengrui Pharma, Bolstering Respiratory and Oncology Pipeline

GSK has announced a groundbreaking collaboration with China's Hengrui Pharma, potentially worth up to $12 billion, to advance up to 12 novel therapies for respiratory, immunology, and oncology indications. The deal, one of the largest licensing pacts of the year, underscores the growing trend of pharmaceutical giants tapping into China's burgeoning biotech sector.

Multi-Billion Dollar Partnership Focuses on COPD and Beyond

At the heart of the collaboration is Hengrui's PDE3/4 inhibitor HRS-9821, currently in Phase I development for chronic obstructive pulmonary disease (COPD). GSK will pay $500 million upfront, with the potential for up to $12 billion in development, regulatory, and commercial milestones if all 12 programs meet their targets.

GSK's Chief Scientific Officer, Tony Wood, 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."

The partnership structure allows Hengrui to lead early-stage development, including patient trials outside China. GSK will then have the exclusive option to advance selected programs, assuming responsibility for clinical development and commercialization worldwide, except in the Greater China region.

Expanding Respiratory Portfolio and China-Originated Drug Trend

For GSK, the Hengrui-partnered programs will complement its existing pipeline, which includes the recently FDA-approved anti-IL-5 antibody Nucala for COPD. The company has been actively expanding its respiratory portfolio, as evidenced by its $1.4 billion acquisition of Aiolos Bio in January 2024, which brought in the long-acting monoclonal antibody AIO-001 for moderate-to-severe asthma.

This deal also reflects a broader industry trend of licensing drugs from China. A recent Jefferies report highlighted 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.

Financial Implications and Market Position

The GSK-Hengrui deal, potentially worth $12 billion, stands as the second-largest biopharma deal of 2025, surpassed only by Johnson & Johnson's $14.6 billion acquisition of Intra-Cellular Therapeutics in January. It also eclipses other significant China deals this year, including Merck's $2 billion lipid-lowering collaboration with Hengrui and Regeneron's $2 billion obesity partnership with Hansoh Pharmaceuticals.

For Hengrui, this collaboration marks another milestone in its globalization efforts. Frank Jiang, Hengrui's Executive Vice President and Chief Strategy Officer, stated, "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."

As the pharmaceutical landscape continues to evolve, this landmark deal between GSK and Hengrui Pharma not only strengthens GSK's pipeline but also highlights the increasing importance of cross-border collaborations in driving innovation and addressing global health challenges.