British pharmaceutical giant GSK has announced a potential investment of up to $12 billion in a partnership with Chinese firm Jiangsu Hengrui Pharmaceuticals to develop 12 new drugs targeting respiratory diseases and cancers.
GSK will initially pay $500 million, but the total potential value of future payments, contingent on the success of the developed drugs, could reach around $12 billion, plus additional royalties, according to a company statement.
The treatments to be developed by Hengrui Pharma will address respiratory diseases, cancers, as well as conditions in immunology and inflammation, GSK noted. The company anticipates “significant new growth opportunities beyond 2031.”
The agreement includes an “exclusive worldwide licence - excluding mainland China, Hong Kong, Macau, and Taiwan" - for a treatment targeting chronic obstructive pulmonary disease (COPD).
Last year, GSK revealed plans to invest up to $1.4 billion to acquire Aiolos Bio, a US and UK-based firm developing a new asthma treatment, originally formulated by Hengrui Pharma.
In April, GSK reported a more than 50% increase in net profit, reaching £1.62 billion in the first quarter, alongside a turnover increase of 2% to £7.5 billion.
GSK’s shares on the London Stock Exchange were up by 1.29% shortly after 10 a.m. Brussels time on Monday.
