HENGRUI PHARMA (01276) has announced that Jiangsu Hengrui Pharmaceuticals Co.,Ltd. has entered into a global strategic collaboration and licensing agreement with Bristol-Myers Squibb Company (BMS). The partnership aims to jointly advance 13 early-stage projects spanning oncology, hematology, and immunology to accelerate the development of innovative medicines for patients worldwide.
The collaboration encompasses four oncology and hematology projects from Hengrui, four immunology projects from BMS, and five innovative projects to be co-developed leveraging Hengrui's R&D engine and diverse technology platforms. All projects are currently in the pre-clinical stage. Under the agreement, Hengrui holds options to co-develop specific projects and has the opportunity to engage in certain global commercialization activities with BMS.
Within this framework, BMS secures exclusive global rights to the Hengrui-originated projects and the jointly developed platform projects for all regions outside Mainland China, Hong Kong SAR, and Macau SAR. Conversely, Hengrui obtains exclusive rights to the BMS-originated projects within Mainland China, Hong Kong SAR, and Macau SAR, with BMS retaining rights for all other global territories. Hengrui will be fully responsible for the early clinical development of these projects to accelerate proof-of-concept.
According to the terms, BMS will make payments to Hengrui totaling up to $950 million. This includes an upfront payment of $600 million, a first anniversary payment of $175 million, and a second conditional anniversary payment of $175 million in 2028. The potential total transaction value could reach approximately $15.2 billion, factoring in the exercise of co-development options and the achievement of all associated development, regulatory, and commercial milestones across all projects.
Furthermore, Hengrui is eligible to receive tiered royalties on product net sales from BMS, excluding sales in Mainland China, Hong Kong SAR, and Macau SAR.
This agreement aligns with the synergistic innovation strategies of both BMS and Hengrui, highlighting their shared commitment to advancing scientific innovation through collaboration in areas of significant unmet medical need. Leveraging BMS's differentiated R&D strengths, global clinical development and regulatory expertise, and commercial scale, alongside Hengrui's drug discovery engine, technology platforms, and efficient early-stage research capabilities, the partnership is designed to accelerate the progression of a series of high-value projects.
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