Major drugmakers turn to China for licensing deals
NVO•Novo Nordisk said it will pay up to $2.6 billion to Jiangsu Hengrui Pharmaceuticals for rights to an experimental weight-loss pill. The deal is the latest in a list of licensing agreements between major drugmakers and Chinese biotechs.
1. Latest licensing deal
Novo Nordisk said it will pay up to $2.6 billion to Jiangsu Hengrui Pharmaceuticals for rights to experimental weight-loss pill HRS-1596. The deal includes $300 million upfront.
2. Deals across the industry
The listed agreements include Merck's September deal with SciBrunch Therapeutics, worth up to $2.13 billion, and GSK's deal with HUTCHMED, worth up to $1.31 billion. Earlier agreements include Pfizer's licensing deal with Innovent Biologics for 12 early-stage oncology programs, with potential payments of up to $10.5 billion.
3. Licensing model
Chinese biotechs often retain domestic rights and license their drugs overseas in exchange for upfront and milestone payments as well as royalties.
