Archive · 28 Jul 2025
Hengrui Pharma Stock Spikes After GSK Drug Development Deal
A Chinese drug company called Hengrui Pharma saw its stock price go up a lot after it made a deal with a big company called GSK.
GSK will get to further develop and sell Hengrui's new medicines all over the world, but not in China.
GSK is paying Hengrui money upfront, and Hengrui could get much more money later if the drugs do well.
Hengrui hopes this deal will help it to bring its new drugs to patients around the world faster.
Jiangsu Hengrui Pharma's stock surged 10% to a 4-year high.
The increase followed a licensing agreement with GSK.
GSK will develop and commercialize Hengrui's HRS-9821 drug and 11 other programs globally.
The deal excludes the China, Hong Kong, Macau, and Taiwan markets.
Hengrui Pharma could receive up to $12 billion plus royalties if goals are met.
- Who
- Jiangsu Hengrui Pharma and GlaxoSmithKline (GSK) are the companies involved.
- What
- Jiangsu Hengrui Pharma licensed global rights of its HRS-9821 drug and 11 other programs to GSK.
- When
- The stock increase was announced recently.
- Where
- The agreement covers global markets excluding China, Hong Kong, Macau, and Taiwan.
- Why
- The deal allows Hengrui Pharma to expand its research and development capabilities and increase market access.
- Company
- Jiangsu Hengrui Pharma
- Stock Movement
- Increased 10%
- Stock Price
- 61-yuan, equivalent to USD 9.62
- Partnership
- Licensing of HRS-9821 and 11 other programs
- Partner
- GlaxoSmithKline (GSK)
- Up-front payment
- $500 million
- Potential Earnings for Hengrui
- Up to $12 billion plus royalties