AstraZeneca inks US$5.3B AI-powered drug discovery deal with China’s CSPC

CHINA— AstraZeneca has entered into a major research collaboration with China’s CSPC Pharmaceuticals, marking a significant step in the pharmaceutical giant’s ongoing commitment to innovation and expansion in China.

The deal, valued at up to US$5.3 billion, focuses on developing new oral therapies for chronic diseases using artificial intelligence (AI) technology.

Under the terms of the agreement, AstraZeneca will pay CSPC an upfront fee of US$110 million.

In addition, CSPC stands to receive up to US$1.62 billion in milestone payments tied to the development progress of drug candidates, as well as up to US$3.6 billion in sales-related milestone payments once products reach the market.

The deal also includes potential single-digit royalties on annual net sales of any commercialized drugs resulting from this partnership.

The collaboration will see AstraZeneca and CSPC jointly discover and develop preclinical drug candidates targeting multiple chronic diseases.

 Among these is a small molecule oral therapy for immunological diseases currently in preclinical development.

CSPC will leverage its AI-powered drug discovery platform, which analyzes how target proteins bind with existing compounds to optimize and identify small molecules with the best potential for development.

This AI-driven approach aims to accelerate the discovery of high-quality therapeutic molecules.

AstraZeneca’s Executive Vice President and Head of Biopharmaceuticals R&D, Sharon Barr, highlighted the importance of this partnership, stating that it underscores AstraZeneca’s dedication to tackling chronic diseases that affect over two billion people worldwide.

She emphasised that combining the scientific expertise of both companies will support the rapid discovery of next-generation medicines.

This agreement also strengthens AstraZeneca’s presence in China, following its announcement earlier in 2025 to invest US$2.5 billion in establishing a research and development hub in Beijing.

The collaboration with CSPC, based in Shijiazhuang City, reflects AstraZeneca’s strategic focus on leveraging AI and expanding its footprint in the Chinese pharmaceutical market.

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