Jiangsu Hengrui Pharmaceuticals (01276) signs strategic cooperation and licensing agreement with Bristol-Myers Squibb.

Jiangsu Hengrui Pharmaceuticals (01276) announced that it has reached a global strategic cooperation and licensing agreement with Bristol Myers Squibb (BMS) to jointly advance 13 early-stage projects covering oncology, hematology, and immunology to accelerate the development of innovative drugs benefiting patients worldwide. The cooperation agreement includes 4 Hengrui oncology and hematology projects, 4 BMS immunology projects, and 5 innovative projects jointly developed by both parties leveraging Hengrui's research engine and diverse innovation technology platform, all of which have not yet entered the clinical research stage. Hengrui has the option to jointly develop specific projects and has the opportunity to conduct specific commercial activities with BMS globally. Under this cooperation framework, BMS has exclusive global rights to the aforementioned Hengrui original research projects and projects developed jointly on the Hengrui platform outside of mainland China, Hong Kong, and Macau. Hengrui has exclusive rights to the aforementioned BMS original research projects in mainland China, Hong Kong, and Macau, while BMS retains rights in other global regions outside of these areas. Hengrui will be responsible for the early clinical development of the projects, accelerating clinical concept validation. According to the agreement, BMS will pay up to $950 million in related payments to Hengrui, including a $600 million upfront payment, a first anniversary payment of $175 million, and a conditional second anniversary payment of $175 million in 2028. The potential total transaction value of the agreement could reach approximately $15.2 billion (including the exercise of the joint development project selection rights and the achievement of corresponding development, registration, and commercialization milestones for all projects). Additionally, Hengrui has the right to receive corresponding tiered sales royalties on net product sales from BMS (excluding mainland China, Hong Kong, and Macau). This agreement aligns with BMS's and Hengrui's collaborative innovation strategy, demonstrating their commitment to advancing scientific innovation through cooperation in areas of significant and unmet medical needs. Based on BMS's differentiated research and development capabilities, global clinical development expertise, regulatory proficiency, and commercial scale, as well as Hengrui's drug development engine, technology platform, and efficient early research capabilities, this cooperation will accelerate the progression of a series of high-value projects.