Bristol Myers Squibb bets US$15.2B on Hengrui partnership to accelerate global drug pipeline

CHINA—Bristol Myers Squibb has entered into a major strategic partnership with Hengrui Pharma, committing US$600 million upfront to advance 13 early-stage drug programs spanning oncology, haematology, and immunology.

The collaboration, which could ultimately reach a total value of US$15.2 billion, reflects the growing importance of China’s biotech ecosystem in global drug development.

Under the agreement, Bristol Myers Squibb (BMS) will gain ex-China rights to four oncology and haematology assets developed by Hengrui.

In addition, the two companies will jointly discover and develop five new drug candidates targeting cancers and immune-related diseases.

The total value of the deal includes milestone payments tied to development, regulatory approvals, and commercial performance, as well as option fees connected to the joint discovery programs.

As part of the arrangement, BMS will also make deferred payments of US$175 million on both the first and second anniversaries of the agreement.

Meanwhile, Hengrui will receive rights to four BMS immunology assets across China, Hong Kong, and Macau, strengthening its domestic pipeline and regional market presence.

Expanding cross-border drug development

The partnership underscores the increasing role of Chinese pharmaceutical companies in accelerating early-stage clinical development.

Hengrui will oversee the initial human clinical studies for the immunology assets licensed from BMS, a move intended to speed up proof-of-concept data generation.

Robert Plenge, M.D., Ph.D., chief research officer at BMS, said the collaboration combines the strengths of both companies across different regions, enabling faster clinical insights and more informed development decisions.

Hengrui also highlighted its expertise in efficient early-stage development as a key contribution to the alliance.

Industry analysts have increasingly pointed to China’s rapid clinical trial timelines as a competitive advantage.

Research from McKinsey indicates that the period from early drug discovery to clinical trial filing can be 50% to 70% faster in China compared to many other regions globally.

China’s growing influence in global biopharma

BMS executives have recently emphasized the strategic importance of China in pharmaceutical innovation.

Speaking at a Citi investor event late last year, David Elkins, BMS chief financial officer, described China as one of the fastest ways to move drug candidates into human trials and obtain proof-of-concept data.

He also noted that China is on track to surpass the United States as the largest source of new clinical trial filings worldwide.

The new agreement further expands Hengrui’s growing network of international partnerships.

In 2025, GSK signed a separate licensing deal with Hengrui worth up to US$12 billion, including a US$500 million upfront payment tied to one lead candidate and options on 11 additional programs.

Hengrui has also established partnerships with Merck & Co., Merck KGaA, and Kailera as it continues to expand its global footprint in drug discovery and development.