China's Hengrui seals $15.2bn pharma deal with US giant Bristol Myers Squibb
Chinese drugmaker Hengrui signed a $15.2 billion licensing deal with US giant Bristol Myers Squibb covering several pipeline therapies. The agreement ranks among the largest deals struck by Chinese pharmaceutical firms with US groups in recent years.
South China Morning Post reported that Hengrui Pharma signed a 15.2 billion dollar deal with Bristol Myers Squibb covering the licensing rights to a portfolio of pipeline molecules. The agreement combines an upfront payment, staged milestone payments and sales royalties.
For Hengrui the transaction is being described as a milestone that strengthens its position in the global drug market. For BMS the deal forms a central plank of the growth story it offers investors, as the company continues to seek replacement products for blockbuster drugs that have recently lost patent protection.
The deal lands at a moment when the Trump administration is seeking to reshape the US-China trade relationship. Industry executives say cross-border licensing in the pharmaceuticals sector has continued to flow strongly despite the wider political tensions.
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