Having recently scored approval for Nucala in chronic obstructive pulmonary disease (COPD), GSK has now signed a major $12 billion biobucks deal designed to strengthen the pharma’s offering for the respiratory condition.
GSK is paying $500 million upfront to China’s Hengrui Pharma in a deal spanning up to 12 drugs. The companies only name-checked one of these medicines in their July 28 release—a PDE3/4 inhibitor dubbed HRS-9821.
HRS-9821 has already demonstrated “potent PDE3 and PDE4 inhibition, leading to increased bronchodilation and anti-inflammatory effects in early clinical and preclinical studies,” Hengrui said in the release.
GSK saw its IL-5 antibody Nucala approved in May as an add-on maintenance treatment for adults with inadequately controlled COPD and an eosinophilic phenotype. The addition of HRS-9821 “supports GSK's ambition to treat patients across the widest spectrum of COPD by including those who face continued shortness of breath or who are unlikely to receive inhaled corticosteroids or biologics, based on their disease profile,” according to the Monday release.
Beyond HRS-9821, the collaboration will encompass up to 11 other programs. In all cases, Hengrui will lead on development up until the completion of phase 1 trials. At that point, GSK will have the exclusive option to take the assets forward and eventually commercialize them outside of the greater China region.
The companies didn’t divulge the details of these various programs beyond the fact that they have been “selected to complement GSK's extensive respiratory, immunology and inflammation (RI&I) and oncology pipeline.”
The deal terms for each these programs have their own financial structure, but, collectively, the development, regulatory and commercial milestone payments coming Hengrui’s way could potentially reach a massive $12 billion, though with the usual caveat that the full amount is rarely reached in these types of pacts. The Jiangsu, China-based company would also receive tiered royalties on ex-China sales.
“We're delighted to announce these exciting agreements with Hengrui Pharma which complement our already-extensive pipeline,” GSK Chief Scientific Officer Tony Wood, Ph.D., said.
“This deal reflects our strategic investment in programs that address validated targets, increasing the likelihood of success, and with the option to advance those assets with the greatest potential for patient impact,” Wood added.
The GSK deal continues an exciting year for Hengrui, which raised HK$9.89 billion ($1.29 billion) via a Hong Kong IPO in May. The biopharma also received a $200 million upfront payment from Merck & Co. for the rights to a phase 2-stage heart disease med and is preparing to head to Chinese regulators armed with impressive weight loss data from its injectable GLP-1/GIP receptor dual agonist.
“This strategic collaboration with GSK marks yet another significant milestone in Hengrui's globalization journey and our mission to innovate and deliver higher-quality, cutting-edge therapies for patients worldwide,” Hengrui Chief Strategy Officer Frank Jiang said in this morning’s release.
“GSK brings additional R&D expertise, a robust global clinical network, and broad regulatory capabilities that will accelerate our PDE3/4 inhibitor as well as an array of other innovative therapy programs to overseas markets, potentially delivering breakthrough treatments to patients globally,” Jiang said.