Bristol Myers Squibb and China's Hengrui Pharma Forge Tie-Up

Published: 2026-05-12 02:43:51 ET BMY

Published on 05/12/2026 at 02:43 am EDT

By Jason Chau

U.S. pharmaceutical giant Bristol Myers Squibb has struck a strategic partnership and licensing deal with major Chinese drugmaker Hengrui Pharmaceuticals, in a deal that could worth more than $15 billion.

The two firms said Tuesday they would collaborate to advance 13 early-stage drug programs.

As part of the partnership, BMS will get exclusive rights--outside mainland China, Hong Kong and Macau--to four oncology and hematology treatments developed by Hengrui. In return, Hengrui will receive rights in those Chinese markets to four immunology drugs developed by BMS.

They also agreed to jointly discover and develop five innovative treatments using Hengrui's technologies.

BMS will pay Hengrui up to $950 million, including $600 million upfront and contingent payments of $175 million on each of the first two anniversaries of the deal.

Including potential milestone payments tied to development, regulatory and commercial targets, the total value of the partnership could reach $15.2 billion, the companies said.

Also, Hengrui will also be eligible to receive tiered royalties on net sales of products outside China.

BMS said the tie-up will serve as a key growth driver by leveraging complementary strengths across geographies, while Hengrui described the deal as the next step in its global expansion.

The agreements mark the latest tie-up between an U.S. pharmaceutical major and an expanding Chinese drugmaker, despite broader geopolitical tensions between the two countries.

Earlier this year, Eli Lilly entered into a partnership with China's Innovent Biologics potentially valued at up to $8.5 billion.

Hengrui Pharmaceuticals' shares were 6.4% higher in Hong Kong and 5.2% higher in Shanghai, pulling back from double digit spikes after the announcement.

The BMS-Hengrui deal is more evidence of multinational pharma companies' preference for Chinese drug assets, given their cost efficiency and innovativeness, said Cui Cui, Jefferies's head of Asia healthcare research.

The deal also shows that "recent geopolitical noise on U.S. House of Representatives urging U.S. FDA to ban early China data did not impact too much of these companies' strategic decision making," she added.

Both BMS and Hengrui expect the deal to close in the third quarter of 2026.

Write to Jason Chau at [email protected]

(END) Dow Jones Newswires

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