Hengrui Pharma and Bristol Myers Squibb announced they have entered into global strategic collaboration and license agreements to advance a portfolio of 13 early stage programs in oncology, hematology and immunology, with the goal of accelerating discovery and development of innovative medicines for patients worldwide. Under the terms of the agreement, BMS will pay Hengrui up to $950M upfront and in milestone payments, with the potential total value reaching approximately $15.2B.
The landmark collaboration includes four oncology/hematology assets from Hengrui, four immunology assets from BMS, and five innovative assets to be jointly discovered and developed by both companies, leveraging Hengrui's discovery engine and platform technologies across several innovative modalities. Hengrui has the option to co-develop select assets and the potential to conduct certain commercialization activities globally with BMS.
The upfront payments include a $600M upfront payment, a $175M first anniversary payment, and a second contingent anniversary payment of $175M in 2028. The potential total value of approximately $15.2B includes the exercise of available options for the joint discovery programs and the achievement of applicable development, regulatory, and commercial milestones for all programs. Hengrui is also eligible to receive tiered royalties on net sales of products commercialized outside the Hengrui Territory.
Under the collaboration, BMS obtains exclusive worldwide rights to the Hengrui-originated assets outside Chinese mainland, Hong Kong SAR, and Macau SAR, while Hengrui obtains exclusive rights to the BMS-originated assets within the Hengrui Territory, with BMS retaining rights for the rest of the world. Hengrui will be fully responsible for early clinical development to accelerate clinical proof of concept for these programs.
"This broad strategic collaboration reflects a highly synergistic collaboration between two global innovators with complementary strengths," said Dr. Frank Jiang, Executive Vice President and Chief Strategy Officer of Hengrui Pharma. "By leveraging Hengrui's growing R&D capabilities and proven efficiency in discovering and advancing innovative therapies, we are poised to advance the best of both pipelines."
Dr. Robert Plenge, Executive Vice President and Chief Research Officer at Bristol Myers Squibb, added: "This strategic collaboration reflects our commitment to advancing innovative science while maintaining a disciplined approach to portfolio management. By leveraging complementary capabilities across geographies, we aim to accelerate early clinical learning and make informed decisions that support driving top tier growth in the next decade."
Subscribe to our e-Newsletters
Stay up to date with the latest news, articles, and events. Plus, get special offers
from American Pharmaceutical Review – all delivered right to your inbox!
Sign up now!