GLONGHUI May 16 丨 Hengrui Pharmaceutical (600276.SH) announced that the company will license the GLP-1 product portfolio with independent intellectual property rights to Hercules of the United States for a fee, and Hercules of the United States will obtain the exclusive right to develop, produce and commercialize the GLP-1 product portfolio on a global scale other than Greater China. As part of the consideration for the foreign licensing transaction, Hengrui will acquire 19.9% of the shares in Hercules of the United States and will obtain licensing fees for the GLP-1 product portfolio from Hercules of the United States.

The GLP-1 product portfolio is an innovative drug independently developed by Hengrui for diabetes, obesity and other metabolic diseases, including: (1) HRS-7535, a small-molecule GLP-1 receptor agonist; (2) HRS9531, a polypeptide GLP-1/GIP dual agonist injection and oral product; and (3) HRS-4729, a next-generation intestinal insulin product.

Down payments and recent milestones total $110 million, including a $100 million down payment and a recent milestone payment of $10 million after completing the technology transfer. Based on the clinical development progress of HRS-7535 and its initial FDA approval for listing, Hercules of the United States will pay Hengrui a cumulative total of no more than US$200 million in clinical development and regulatory milestones. Based on the actual annual net sales of the GLP-1 product portfolio in the licensed region, Hercules of the United States will pay Hengrui a cumulative sales milestone of no more than US$5.725 billion.