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Chinese pharmaceutical company has granted UK-Swedish pharmaceutical giant AstraZeneca worldwide rights outside of China for an innovative treatment targeting chronic obstructive pulmonary disease (COPD), a chronic lung inflammation that impairs breathing. The deal is valued at up to $1.9 billion.
AstraZeneca will now have the rights to develop, manufacture, and market TQC3721, a dual phosphodiesterase 3/4 inhibitor, sourced from the parent company’s subsidiary. The pharmaceutical firm also secures exclusive global rights to the drug’s dedicated development plans.
Under the agreement, AstraZeneca will make an initial payment of $200 million, with additional milestone payments for development, regulatory approval, and sales reaching up to $1.7 billion. The company will also pay royalties based on a percentage of annual net sales, potentially amounting to double digits. The deal remains subject to regulatory approval.
This company has a strong presence in China’s respiratory market, notably achieving domestic substitution of budesonide suspension, generating annual sales exceeding 500 million yuan (approximately $73.6 million). With AstraZeneca’s expertise in clinical development and its own innovation capabilities, the company aims to accelerate the global progress of TQC3721.
AstraZeneca leads the global respiratory and immune drug market by revenue, boasting more than 15 respiratory pipeline products and four key medications each generating over $1 billion annually.
TQC3721 enhances bronchodilation and anti-inflammatory effects synergistically by balancing PDE3 and PDE4 inhibition, promising improvements in lung function, a lowered risk of acute exacerbations, and better long-term management of chronic respiratory diseases.
The nebulized inhalation form of TQC3721 is currently in Phase III clinical trials in China for COPD treatment, while a dry inhalation powder is progressing through Phase II trials. The company notes this drug could become the first domestically produced dual PDE3/4 inhibitor approved for the Chinese market.
Verona Pharma’s Ensifentrine remains the only similar drug available globally. Last July, Merck—known outside the U.S. and Canada as Merck Sharp & Dohme—agreed to acquire Verona for $10 billion, with the transaction expected to close this October, drawing significant market attention.
Other Chinese companies in the COPD space include Hengrui Pharmaceuticals and Haisco Pharmaceutical Group, which licensed their PDE3/4 innovative drugs to GSK in the UK and AirNexis Therapeutics in the U.S., respectively, in recent months.
Shares of the company increased by 0.4 percent to HKD 4.84 (about 61 cents), after earlier climbing as much as 6.9 percent during the trading day in Hong Kong.
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