Hengrui Pharma Expands Global Reach with $1.1B ADC Deal

Jiangsu Hengrui Pharmaceuticals continues its aggressive expansion strategy with a potential $1.1 billion licensing deal for its HER2 antibody-drug conjugate (ADC) trastuzumab rezetecan. The agreement, announced on September 24, 2025, grants certain rights to a subsidiary of India's Glenmark Pharmaceuticals, focusing on emerging markets while excluding major regions such as the U.S., Canada, Europe, Japan, and greater China.

Deal Structure and Strategic Implications

The collaboration features an $18 million upfront payment, with the potential for up to $1.09 billion in regulatory and commercial milestones, plus sales-based royalties. This structure aligns with Hengrui's strategy to deepen its presence in emerging markets, as stated by Jo Feng, president of Hengrui Pharma.

For Glenmark, the deal represents a significant expansion of its oncology pipeline, complementing its existing portfolio. Glenn Saldanha, chairman and managing director of Glenmark Pharmaceuticals, emphasized the strategic importance of this acquisition for the company's growth in the oncology sector.

Trastuzumab Rezetecan: A Competitor to Enhertu

Hengrui's trastuzumab rezetecan is positioned as a direct competitor to AstraZeneca and Daiichi Sankyo's blockbuster drug Enhertu. Both ADCs utilize trastuzumab as the antibody guide and an exatecan derivative as the toxic payload. However, Hengrui's drug carries rezetecan, which the company claims has high membrane permeability, enabling a bystander killing effect that enhances antitumor efficacy.

Trastuzumab rezetecan has already gained approval in China for second-line non-small cell lung cancer with HER2-activating mutations in May 2025. A breast cancer application is currently under review by Chinese authorities. The drug has also received orphan drug designation from the FDA for use in combination with Hengrui's PD-L1 inhibitor adebrelimab and chemotherapy in stomach cancer.

Hengrui's Expanding Pipeline and Market Position

This latest deal adds to Hengrui's growing list of high-value partnerships, including a potential $12 billion agreement with GSK and a nearly $2 billion cardiovascular partnership with Merck & Co. The company's ADC pipeline extends beyond HER2, covering targets such as TROP2, Nectin-4, Claudin 18.2, HER3, and CD79b, positioning Hengrui as a significant player in the competitive ADC landscape.

As the pharmaceutical industry continues to focus on innovative therapies, Hengrui's strategic moves and expanding pipeline underscore the company's ambition to become a global leader in oncology and other key therapeutic areas.