GSK Partners with Hengrui Pharma for $500m Collaboration

GSK shares rose 1.4% to 1,412.23p after announcing a $500m collaboration with Hengrui Pharma to co-develop up to 12 experimental medicines. The deal includes global rights to HRS-9821, a potential COPD treatment, and gives GSK the option to license up to 11 more drug candidates. Hengrui could receive up to $12 billion in payments and royalties if all milestones are met.

GSK plc (GSK) shares rose 1.4% to 1,412.23p following the announcement of a $500 million collaboration with Hengrui Pharma to co-develop up to 12 experimental medicines. The deal, which was announced on July 28, 2025, includes global rights to HRS-9821, a potential treatment for chronic obstructive pulmonary disease (COPD), and gives GSK the option to license up to 11 more drug candidates.

The collaboration, one of the largest licensing deals of the year so far, involves an upfront payment of $500 million from GSK. Hengrui Pharma will lead the development of these programs up to the completion of phase I trials. GSK will then have the exclusive option to take the assets forward and eventually commercialize them outside of the Greater China region. The potential total value of future success-based development, regulatory, and commercial milestone payments to Hengrui Pharma is approximately $12 billion if all programs are optioned and all milestones are achieved. Additionally, Hengrui Pharma will be eligible to receive tiered royalties on global product net sales (excluding mainland China, Hong Kong SAR, Macau SAR, and Taiwan region) [1][2][3].

The star of the GSK-Hengrui partnership is HRS-9821, a PDE3/4 inhibitor in phase I development as an add-on maintenance therapy for COPD. The asset can also be formulated as a dry-powder inhalable, making it a good fit for GSK’s established inhaler portfolio. The collaboration aims to complement GSK’s extensive pipeline, which includes the anti-IL-5 antibody Nucala, approved for COPD in May [1][3].

This deal is part of GSK’s strategic investment in programs that address validated targets, increasing the likelihood of success. It reflects GSK’s ambition to treat patients across the widest spectrum of COPD, including those who face continued shortness of breath or who are unlikely to receive inhaled corticosteroids or biologics based on their disease profile [3].

The collaboration enables scale and speed to proof-of-concept to develop up to 11 additional innovative medicines. If all programs are optioned and all milestones are achieved, the potential total value of future success-based development, regulatory, and commercial milestone payments to Hengrui Pharma is approximately $12 billion. Additionally, Hengrui Pharma will be eligible to receive tiered royalties on global product net sales (excluding mainland China, Hong Kong SAR, Macau SAR, and Taiwan region) [1][2][3].

References:
[1] https://www.biospace.com/business/gsk-bets-up-to-12b-for-multi-program-cancer-pact-with-hengrui
[2] https://www.benzinga.com/news/health-care/25/07/46664599/gsk-merck-chinese-biotech-hengrui-pharma-collaborates
[3] https://www.fiercebiotech.com/biotech/gsk-strengthens-copd-offering-12b-biobucks-deal-chinas-hengrui-pharma