Hefty $6 Billion Deal: Hengrui Licenses GLP-1 Portfolio to Hercules

Hengrui Medicine, a leading innovative global pharmaceutical company, has announced a landmark deal. The company has granted the exclusive rights to develop, manufacture, and commercialize its proprietary GLP-1 class of innovative drugs - HRS-7535, HRS9531, and HRS-4729 - to Hercules, a new biopharmaceutical company based in the United States.

Hercules, founded in May 2024, is backed by a consortium of prominent investment firms, including Bain Capital Life Sciences Fund, Atlas Ventures, RTW Capital, and Lyra Capital, who have collectively invested $400 million to establish the company. Bain Capital Life Sciences Fund, established in 2016, has a global investment focus on the pharmaceutical, biotechnology, medical device, diagnostics, and life sciences tool sectors, with a particular emphasis on driving medical innovation and addressing unmet healthcare needs.

Under the terms of the agreement, Hercules will pay Hengrui an upfront payment and near-term milestone payments totaling $110 million, as well as up to $200 million in clinical development and regulatory milestones, and up to $5.725 billion in sales milestones, along with tiered royalties on net sales ranging from low single-digit to low double-digit percentages. In exchange, Hengrui will acquire a 19.9% equity stake in Hercules.

Hengrui's innovative GLP-1 portfolio holds significant promise for the treatment of type 2 diabetes (T2DM) and obesity. HRS-7535, an oral small-molecule GLP-1 receptor agonist, can enhance insulin secretion, suppress glucagon release, and increase satiety, making it a potential game-changer in the management of T2DM and weight loss. HRS9531, a dual agonist targeting the glucose-dependent insulinotropic polypeptide receptor (GIPR) and the GLP-1 receptor, aims to synergistically promote insulin secretion, suppress energy intake, and improve insulin sensitivity, while mitigating the gastrointestinal side effects associated with GLP-1 agonists.

The licensing deal underscores Hengrui's commitment to advancing its innovative pipeline and making its research and development achievements accessible to patients globally. With over a decade of R&D investments totaling nearly $40 billion, Hengrui has already launched 16 innovative drugs and 4 second-class new drugs in China, with more than 90 self-developed innovative products in various stages of development.

This landmark partnership with Hercules is set to further strengthen Hengrui's position as a leading global biopharmaceutical player, as it continues to drive medical innovation and address unmet healthcare needs worldwide.