China’s Hengrui seals US$15.2 billion deal with US pharmaceutical giant BMS

AdvertisementChina’s private sectorBusinessChina BusinessChina’s Hengrui seals US$15.2 billion deal with US pharmaceutical giant BMS

Company’s shares jump in Hong Kong and Shenzhen after tie-up that bolsters China’s growing drug innovation profile

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Julie ZhangPublished: 6:00pm, 12 May 2026

Jiangsu Hengrui Pharmaceutical, China’s largest drug company by market capitalisation, has signed a global collaboration and licensing agreement with US pharmaceutical giant Bristol Myers Squibb (BMS) worth up to US$15.2 billion.

Hengrui’s Hong Kong-traded shares climbed 5.3 per cent to HK$69.55 on Tuesday, while its Shenzhen stock rose 4.84 per cent to 56.11 yuan.

The deal adds credibility to China’s growing reputation for innovative drug development. Industry players, however, said the country still had some way to go before it gained a “genuine voice” in the global pharmaceutical industry.Advertisement

The collaboration covers four oncology and haematology programmes originating from Hengrui, four immunology assets from BMS, and another five novel programmes to be jointly developed using Hengrui’s discovery platforms. All 13 programmes are at the preclinical stage, according to a filing with the Hong Kong stock exchange.

BMS has agreed to pay Hengrui up to US$950 million in near-term consideration, including an upfront payment of US$600 million. The overall deal value could reach about US$15.2 billion if all development, regulatory and commercial milestones are met and options on the co-discovery projects are exercised.

Hengrui will also be entitled to tiered royalties on sales of partnered products outside mainland China, Hong Kong and Macau.

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