Chinese pharmaceutical giant Jiangsu Hengrui Pharmaceuticals and British drugmaker GSK have reached an agreement worth up to USD12.5 billion, with Cooley advising Hengrui, while Davis Polk and Han Kun Law Offices are counselling GSK.
The two pharma giants have agreed to jointly develop up to 12 innovative drugs that are used for respiratory, autoimmune and inflammatory diseases and oncology treatments.
Their agreement includes Hengrui granting GSK the exclusive worldwide licence (excluding mainland China, Hong Kong, Macau and Taiwan) for its PDE3/4 inhibitor HRS-9821, which is primarily used for the treatment of chronic obstructive pulmonary disease.
Hengrui will receive an upfront fee of USD500 million, as well as a subsequent payment of up to USD12 billion if all milestones are achieved. In addition, Hengrui is eligible to receive and will also be entitled to receive tiered royalties on global product net sales.
Cooley partner Alan Tamarelli led the team acting as Hengrui’s legal counsel.
Han Kun guided GSK on PRC law, with partner Zhu Min leading the team. The team reviewed the licensing agreement and the options, as well as the collaboration agreement. The firm has also advised on regulatory, data compliance and intellectual property matters.
Davis Polk’s legal team, with lawyers based in New York, Washington and London, advised GSK on intellectual property, antitrust and tax matters. The team included partners David Bauer, Howard Shelanski, Jesse Solomon, Matthew Yeowart, Dominic Foulkes and Paul Marquardt.
Hengrui is a renowned cancer drugmaker that has a dual listing on the SSE and the HKEX. It raised HKD9.9 billion this year when it debuted in Hong Kong, setting the largest IPO record in the city’s pharmaceutical sector in the past five years.
Amid the rapid development of the global pharmaceutical industry, China has seen a boom in out-licensing deals for innovative drugs in 2025. In the first half of this year alone, the number of out-licensing deals by Chinese pharmaceutical companies exceeded 50, with a total value of USD48.4 billion and almost matches the full-year level for 2024.
