Shares in GSK PLC (LSE:GSK, NYSE:GSK) rose in morning trading after the pharmaceutical group announced a $500 million collaboration with Hengrui Pharma to co-develop up to 12 experimental medicines, in a deal that could be worth as much as $12 billion.
The agreement includes global rights (excluding China and a few territories) to HRS-9821, a potential new treatment for chronic obstructive pulmonary disease (COPD).
The drug targets enzymes that drive inflammation and airway tightening, with early studies showing improved lung function. It will be developed as a dry-powder inhaler, complementing GSK’s existing respiratory portfolio.
Beyond HRS-9821, the deal gives GSK the option to license up to 11 more drug candidates.
Hengrui will lead early development through phase I trials, with GSK taking over later-stage development and global commercial rights.
If all milestones are met, Hengrui could receive up to $12 billion in total payments, plus royalties on future product sales.
The stock rose 1.4% to 1,412.23p.