Pharma giant GSK signs a £370 million deal with Chinese competitor Jiangsu Hengrui for the development of up to twelve novel pharmaceuticals.
In a significant move, GSK has entered into a deal with Jiangsu Hengrui Pharmaceuticals, aiming to acquire rights for HRS-9821, an experimental phosphodiesterase 3 and 4 inhibitor in clinical trials for chronic obstructive pulmonary disease (COPD). The deal, worth $500 million upfront, includes licensing options for 11 additional preclinical programs in respiratory, immunology, inflammation, and oncology, with a potential total value of up to $12 billion in milestones and royalties.
HRS-9821 is designed to complement GSK’s existing COPD portfolio, including its recently approved drug Nucala, by targeting patients not adequately served by current treatments. The drug works via dual PDE3/4 inhibition, a mechanism that modulates inflammation and airway smooth muscle tone, positioning it as a potentially best-in-class COPD therapy.
From a strategic standpoint, the deal reflects GSK’s growth strategy to expand and diversify its respiratory pipeline by incorporating innovative China-originated molecules while leveraging GSK’s global clinical development, regulatory, and marketing infrastructure. It also allows GSK to accelerate innovation by accessing high-potential early-stage assets from Hengrui’s robust discovery engine. The collaboration aligns with GSK's approach to deepen its presence in China and globally, reinforcing its therapy areas in respiratory and oncology through multiple programs with options to advance the most promising candidates.
Interestingly, this deal comes at a time when GSK's chief exec, Emma Walmsley, aims to reach annual sales of over £40bn by 2031. The deal is part of GSK’s strategy to grow its pipeline to offset declining revenues from top drugs and vaccines. However, the current financial state of Jiangsu Hengrui Pharmaceuticals was not provided in the announcement.
In addition, several companies, including Interactive investor, Hargreaves Lansdown, AJ Bell, Trading 212, and others, were mentioned in the context of investing, but further details about their services, fees, or other specifics were not provided.
The timeline for the development and potential release of the medicines resulting from this deal is also not clear at this point. As more information becomes available, it will be interesting to see how this partnership shapes GSK’s future portfolio and contributes to the advancement of treatments for chronic lung conditions and other therapeutic areas.
- GSK is expanding its investment in health-and-wellness, particularly in the respiratory field, by collaborating with Jiangsu Hengrui Pharmaceuticals to acquire rights for HRS-9821, a potential best-in-class COPD therapy that also targets chronic diseases and medical-conditions such as respiratory-conditions, immunology, inflammation, and oncology.
- The fitness-and-exercise industry may benefit from this partnership as well, given GSK's commitment to deepen its presence in China and globally, which includes a focus on therapy areas like respiratory and oncology through multiple programs, potentially leading to advancements in treatments for chronic lung conditions.
- With several companies offering investment opportunities in the context of this deal, such as Interactive investor, Hargreaves Lansdown, AJ Bell, Trading 212, and others, individuals interested in medical-conditions, chronic diseases, respiratory-conditions, and the overall health-and-wellness sector may seek further information about their services, fees, or other specifics to make informed decisions.
