GSK PLC (LSE:GSK, NYSE:GSK) has agreed to pay $500 million in upfront fees to Chinese drugmaker Hengrui Pharma as part of a wide-ranging collaboration to develop up to 12 experimental medicines in a deal worth up to a potential $12 billion.
It is the latest move by the British giant to bolster its pipeline beyond 2031.
The tie-up includes an exclusive global licence, excluding China and certain territories, for a promising drug candidate, HRS-9821, currently in clinical trials for chronic obstructive pulmonary disease (COPD).
The compound targets two enzymes, PDE3 and PDE4, which play key roles in airway constriction and inflammation, and has shown early signs of boosting lung function while reducing inflammation.
HRS-9821 will be developed as a dry-powder inhaler, fitting into GSK’s existing respiratory portfolio, which includes long-standing therapies for asthma and COPD.
The company said the drug has the potential to benefit patients who continue to suffer from breathlessness or are not suitable for inhaled steroids or biologics.
Beyond HRS-9821, the agreement sets up a joint framework for up to 11 additional drug development programmes.
Hengrui will lead early-stage development through phase I clinical trials, including studies outside China, with GSK holding the right to take over global development and commercialisation at its discretion. Each programme will have its own financial terms.
GSK said the total value of the agreement, if all programmes are advanced and milestones met, could reach approximately $12 billion.
Hengrui would also receive tiered royalties on global sales, excluding mainland China, Hong Kong, Macau and Taiwan.
Tony Wood, GSK’s chief scientific officer, said: “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.”