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

Hengrui Medicine, a prominent global pharmaceutical company, has entered a significant agreement with Hercules, a newly established biopharmaceutical company in the United States. Through this deal, Hengrui has granted Hercules exclusive rights to develop, manufacture, and commercialize its innovative GLP-1 class of drugs, namely HRS-7535, HRS9531, and HRS-4729.

Hercules, which came into existence in May 2024, is supported by a notable consortium of investment firms such as Bain Capital Life Sciences Fund, Atlas Ventures, RTW Capital, and Lyra Capital. These firms have collectively invested $400 million to launch Hercules. Bain Capital Life Sciences Fund, which was founded in 2016, focuses on investments in sectors like pharmaceuticals, biotechnology, medical devices, diagnostics, and life sciences tools, with a strong emphasis on progressing medical innovation and addressing unmet medical needs.

According to the terms of the agreement, Hercules will provide Hengrui with an upfront payment and near-term milestone payments amounting to $110 million. Additionally, Hengrui stands to receive up to $200 million in clinical development and regulatory milestones, and as much as $5.725 billion in sales milestones. Moreover, Hengrui will benefit from tiered royalties on net sales ranging from low single-digit to low double-digit percentages. In return, Hengrui will acquire a 19.9% equity stake in Hercules.

The innovative GLP-1 portfolio from Hengrui shows significant potential for treating type 2 diabetes (T2DM) and obesity. HRS-7535 is an oral small-molecule GLP-1 receptor agonist that can boost insulin secretion, inhibit glucagon release, and increase satiety, making it a promising candidate for managing T2DM and aiding in weight loss. HRS9531, a dual agonist targeting both the glucose-dependent insulinotropic polypeptide receptor (GIPR) and the GLP-1 receptor, aims to synergistically enhance insulin secretion, reduce energy intake, and improve insulin sensitivity, while also mitigating gastrointestinal side effects typically associated with GLP-1 agonists.

This licensing arrangement highlights Hengrui's dedication to advancing its innovative pipeline and ensuring that its research and development successes reach patients on a global scale. Over the past decade, Hengrui has invested nearly $40 billion in research and development, resulting in the launch of 16 innovative drugs and 4 second-class new drugs in China. The company has more than 90 self-developed innovative products in various stages of development.

The partnership with Hercules is poised to further cement Hengrui's status as a leading global biopharmaceutical company. By fostering medical innovation and addressing unmet healthcare needs worldwide, Hengrui continues to strengthen its position in the industry.