GlaxoSmithKline (GSK) will pay a Chinese company US$12.5 billion for exclusive global rights to develop a dozen drugs, in a landmark deal that underscores how China’s research labs are snapping up market share in the global pharmaceutical and biomedical industries.
The deal would give GSK the rights to develop a drug for treating chronic obstructive pulmonary disease (COPD) called HRD-9821, as well as 11 of the preclinical programmes owned by Jiangsu Hengrui Pharmaceuticals. The global rights exclude mainland China, Taiwan, Hong Kong and Macau, according to a statement to the Hong Kong stock exchange on Monday.
Hengrui, established in the Jiangsu provincial city of Lianyungang in 1997, would receive a US$500 million upfront payment and charge US$12 billion to GSK upon the achievement of development, regulatory approval and sales milestones.
“The signing of the agreement will help expand the international market for HRS-9821 and multiple innovative medicines in various therapeutic areas, including oncology, respiratory, immunology and inflammation, providing high-quality treatment options for patients worldwide,” Hengrui said in a statement.
