BMS signs $15.2bn R&D alliance with China's Hengrui
Bristol Myers Squibb has forged close ties with China's Hengrui Pharma, partnering across 13 programmes in oncology, haematology, and immunology in a deal that could be worth a massive $15.2 billion.
The agreement includes an upfront payment to Hengrui of $600 million and two payments of $175 million after one and two years, and will see the two parties cross-license four oncology/haematology candidates from the Chinese firm and four immunology assets from BMS, whilst deploying Hengrui's drug discovery platform to identify and jointly develop five more.
It is one of the strongest examples yet to mark the emergence of the Chinese industry as a major source of innovative drug candidates for big pharma groups, with some analyses suggesting China is now accounting for around a third of all pipeline projects worldwide. It also ties in with a recent trend of such deals going beyond the traditional licensor/licensee relationship towards strategic-level alliances.
It's Hengrui's second high-level deal of this type in consecutive years, coming after a $12 billion collaboration with GSK, which spanned a dozen candidates, respiratory, immunology and inflammation, and oncology.
Under the terms of the deal, BMS gets exclusive rights to the four Hengrui assets outside China, Hong Kong, and Macau, with the Chinese company getting rights in those territories to the four coming from BMS. The identity of the 13 programmes has not been divulged, but none of them has yet started clinical testing, according to Hengrui.
Hengrui's chief executive, Frank Jiang, said the agreement "reflects a highly synergistic collaboration between two global innovators with complementary strengths," and is part of drive by the company to expand its presence on the global stage.
Even before the GSK and BMS deals, Hengrui had become one of the most prolific sources of new drugs for multinational pharma groups, having previously signed big-ticket deals with the likes of MSD and Merck KGaA, amongst others.
Robert Plenge, BMS' chief research officer, said it would help the company maintain a "disciplined approach to portfolio management," and help it to "accelerate early clinical learning and make informed decisions that support driving top-tier growth in the next decade."
The companies expect the partnership to be finalised in the third quarter of 2026, after the customary antitrust and financial regulatory assessments.
