CSPC Innovation Pharmaceutical Co.,Ltd. (300765.SZ) announced that its controlling subsidiary, CSPC Jushi Biopharmaceutical Co., Ltd., along with its affiliates CSPC Pharmaceutical Group Limited and CSPC Zhongqi Pharmaceutical Technology (Shijiazhuang) Co., Ltd., collectively entered into a Strategic Collaboration and Licensing Agreement with AstraZeneca PLC on January 29, 2026. The parties will engage in a comprehensive strategic collaboration with AstraZeneca in the fields of innovative peptide molecule discovery and the development of long-acting delivery products. Acting jointly as the licensors, Jushi Biopharmaceutical, CSPC Pharmaceutical Group, and Zhongqi Pharmaceutical will collaborate extensively with AstraZeneca on discovering innovative peptide molecules and developing long-acting delivery products. AstraZeneca will gain access to innovative long-acting peptide drugs developed by the licensors based on their proprietary long-acting delivery technology platform and peptide drug discovery platform. This portfolio includes one clinical-ready project, SYH2082 (a long-acting GLP1R/GIPR agonist advancing to Phase I clinical trials), and three preclinical-stage R&D projects with distinct mechanisms of action. The two sides will also collaborate on four additional new projects utilizing these platforms. Under the agreement, the licensors grant AstraZeneca an exclusive license to develop, manufacture, and commercialize the relevant authorized products globally, excluding Mainland China, Hong Kong SAR, Macao SAR, and Taiwan. The licensors retain the rights to these products in Mainland China, Hong Kong SAR, Macao SAR, and Taiwan. AstraZeneca will pay the licensors a total upfront payment of $1.2 billion, of which Jushi Biopharmaceutical will receive 35%. AstraZeneca will also pay corresponding milestone payments to the licensors based on the development, regulatory approval, and sales performance within the licensed territory. The cumulative milestone payments from AstraZeneca to the licensors could reach up to $3.5 billion for development milestones and up to $13.8 billion for sales milestones. Jushi Biopharmaceutical will be entitled to receive corresponding development and sales milestone payments based on the actual progress of the pipelines authorized under the agreement. This transaction is conducive to accelerating the global development and commercialization process of the company's related innovative drug pipelines. It holds significant importance for the company's strategy to deepen its global footprint and accelerate the transformation of its innovation achievements. The transaction will continuously optimize the company's cash flow structure, accelerate the recovery of prior R&D investments, and provide stable funding support for the sustained R&D of subsequent innovative drug pipelines. This highly aligns with the company's long-term development strategy of accelerating the building of a leading innovative biopharmaceutical platform. It is beneficial for promoting the company's long-term sustainable development and is expected to have a substantial positive impact on its future operations.
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