Jiangsu Hengrui Pharmaceuticals Co., Ltd announced a licensing agreement with Merck KGaA, Darmstadt, Germany, a leading science and technology company, for its next-generation potent and selective PARP1 (poly (ADP-ribose) polymerase 1) inhibitor, HRS-1167. This is Hengrui's first strategic collaboration with a global pharmaceutical company. The agreement includes an option to an exclusive license for its innovative Claudin-18.2 antibody drug conjugate (ADC) SHR-A1904.
Under the terms of the agreement, Merck KGaA, Darmstadt, Germany, will provide Hengrui Pharma with an upfront payment of €160 million. Hengrui Pharma will receive payments for technology transfer as well as an option exercise for the Claudin-18.2 ADC for up to €90 million. Upon the achievement of certain development, regulatory and commercial milestones, Hengrui is eligible to receive royalty payments on net sales of such products by Merck KGaA, Darmstadt, Germany. Potential payments may total up to €1.4 billion with up to double-digit royalty payments.
Merck KGaA, Darmstadt, Germany, will receive exclusive rights to develop, manufacture and commercialize HRS-1167 worldwide, outside of mainland China, an exclusive option to develop, manufacture and commercialize SHR-A1904 worldwide, outside of mainland China, and an option to co-promote HRS-1167 and SHR-A1904 in mainland China.
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