Hengrui Licenses GLP-1 Trio to US Biotech for $400M

A burgeoning biotech company named Hercules is making waves in the weight loss industry with the support of a substantial $400 million venture capital injection and a promising portfolio of assets. According to documents shared on the Shanghai Stock Exchange, Jiangsu Hengrui Pharmaceutical Co. has granted Hercules the rights outside of China for its GLP-1 portfolio. This strategic move positions Hercules to compete in the lucrative obesity market alongside a handful of other contenders.

Hercules has already garnered significant financial backing from renowned investors in the life sciences sector. Bain Capital is the company’s largest investor, contributing $225 million for a 39.4% stake. RTW Capital follows as the next significant shareholder, investing $110 million for a 19.3% share. Additionally, Atlas Ventures and Sino Investment have invested $50 million and $15 million, respectively, securing 8.8% and 2.6% stakes in the company.

The initial deal saw Hercules paying $100 million upfront to acquire the rights to Hengrui’s GLP-1 programs. Hengrui is also eligible for up to $10 million in near-term payments and can earn as much as $200 million through clinical development and regulatory milestones. Furthermore, Hengrui stands to gain up to $5.7 billion in sales milestones, holding approximately 20% equity in Hercules.

The most advanced asset in Hercules' portfolio is HRS-7535, an oral GLP-1 receptor agonist currently undergoing Phase II trials for both obesity and type 2 diabetes. Hercules is also developing injectable and oral versions of HRS9531, a dual GLP-1/GIP agonist. This second candidate is in Phase II testing for obesity and diabetes, with plans to explore its potential benefits for cardiovascular and kidney functions.

Additionally, Hercules has a promising preclinical compound, HRS-4729. This next-generation incretin product is designed to protect pancreatic islets, enhance insulin secretion, control blood sugar levels, and promote weight loss. The development of these compounds places Hercules in a competitive position within the obesity treatment space, an industry poised for significant growth.

In summary, Hercules is strategically positioned to make a significant impact in the weight loss and diabetes treatment markets, backed by substantial venture capital and a robust pipeline of GLP-1 based therapies. The company's financial and developmental strategies indicate a strong potential for success in these burgeoning fields.