AstraZeneca is paying Sino Biopharmaceutical $200 million upfront for ex-China rights to a late-phase challenger to Merck & Co.’s chronic obstructive pulmonary disease (COPD) drug Ohtuvayre.
The deal, which includes (PDF) up to $1.9 billion in milestones, covers a PDE3/4 inhibitor, TQC3721. Sino, working through its Chia Tai Tianqing Pharmaceutical subsidiary, has advanced a nebulized formulation of the drug candidate into phase 3 development in China. A dry powder inhaler formulation is in phase 2 and Sino has hailed TQC3721 as a potential best-in-class asset after posting mid-stage data on the candidate.
Merck’s Ohtuvayre has set the benchmark in the PDE3/4 class. When the U.S. pharma acquired Ohtuvayre last year in its $10 billion buyout of Verona Pharma, Merck CEO Robert Davis said the asset has “multibillion-dollar peak commercial potential.” Ohtuvayre generated revenue of $131 million in the first quarter.
While Merck is racing to accelerate Ohtuvayre growth, AstraZeneca has spotted an opportunity to crash the PDE3/4 party. TQC3721 improved peak FEV1, a measure of lung function, by up to 147 mL at Week 4 of a phase 2 trial. For comparison, Verona reported improvements of up to 124 mL in a phase 2 study.
Verona published its phase 2 data in 2020 and won FDA approval for Ohtuvayre in 2024. AstraZeneca can draw on its COPD experience and expertise as it works to close the gap on Ohtuvayre. The U.K.-based pharma sells Symbicort and Breztri in indications including COPD, generating (PDF) sales of $1.2 billion from the drugs in the first quarter.
TQC3721 will join a pipeline of next-generation COPD drug candidates in development at AstraZeneca. In March and April, the company reported positive phase 3 data on its anti-IL-33 antibody tozorakimab, which it plans to send to regulators. AstraZeneca is also running a phase 2 trial of an IRAK4 inhibitor, AZD6793, in COPD.
The Sino deal also gives AstraZeneca exclusive global rights to certain future development programs.