Jiangsu Hengrui signs pact with GSK on HRS-9821

Jiangsu Hengrui signs pact with GSK on HRS-9821

Jiangsu Hengrui Pharmaceutical Co., Ltd. (Hengrui) has entered into a strategic partnership with GlaxoSmithKline (GSK) to develop and commercialize HRS-9821, a novel drug candidate for the treatment of multiple myeloma. The agreement, signed on July 2, 2025, aims to leverage GSK's extensive regulatory and commercial capabilities to accelerate the drug's development and bring it to market.

HRS-9821, a Blenrep-based therapy, is designed to target patients with relapsed or refractory multiple myeloma. This collaboration follows GSK's recent success in securing EU approval for its Blenrep-based treatments [1]. The drug combines Velcade and Pomalyst, and the collaboration with Hengrui marks GSK's continued commitment to advancing innovative therapies in oncology.

The partnership is a significant milestone for Hengrui, which has been actively pursuing international collaborations to expand its drug portfolio. The agreement provides Hengrui with access to GSK's robust clinical development and regulatory expertise, while GSK gains a stake in a promising drug candidate.

Wall Street analysts have expressed cautious optimism about the potential impact of this collaboration on GSK's stock. According to GuruFocus estimates, the projected GF Value for GSK in the coming year is $46.52, indicating a notable upside of 23% from the current price of $37.82 [1]. Analysts suggest a modest upside potential for GSK stock, with one-year price targets averaging $38.74 [1].

The consensus among brokerage firms places GSK's average brokerage recommendation at 2.9, categorizing the stock as a "Hold" [1]. This rating reflects the cautious yet optimistic view of the market regarding GSK's future prospects.

The collaboration between Jiangsu Hengrui and GSK underscores the growing trend of strategic partnerships in the pharmaceutical industry. As companies seek to accelerate drug development and enhance market reach, these collaborations are becoming increasingly common. Investors and financial professionals should closely monitor this partnership and its potential impact on both companies' stock performance.

References:
[1] https://www.gurufocus.com/news/3002658/gsk-gsk-gains-eu-approval-for-new-blenrep-therapies