GSK and Hengrui Pharma enter research agreements

28 July 2025

Jiangsu Hengrui Pharmaceuticals (SHA: 600276) shares rallied to their highest level in four years – leaping 10% to 62.04 renminbi - after UK pharma major GSK (LSE: GSK) announced a deal with the Chinese company.

The agreement provides for GSK to develop up to 12 innovative medicines, adding significant new growth opportunities to the company beyond 2031. The programs were selected to complement GSK’s extensive respiratory, immunology and inflammation (RI&I) and oncology pipeline, and assessed for their potential best- or first-in class profiles. GSK will pay $500 million in upfront fees across the agreements.

The potential total value of future success-based development, regulatory and commercial milestone payments to Hengrui Pharma is around $12 billion if all programs are optioned and all milestones are achieved. In addition, Hengrui Pharma will be eligible to receive tiered royalties on global product net sales (excluding mainland China, Hong Kong, Macau and Taiwan).

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