Bristol Myers Squibb and Hengrui Pharma have entered into a broad strategic collaboration and licensing agreement focused on developing innovative medicines across oncology, hematology, and immunology, in a deal that could ultimately be worth up to $15.2 billion.
The partnership includes a portfolio of 13 early-stage programs aimed at accelerating the discovery and development of new therapies for patients worldwide. Under the agreement, the companies will combine their research, development, and commercialization capabilities to advance multiple investigational treatments targeting serious diseases with significant unmet medical needs.
The collaboration covers four oncology and hematology assets originating from Hengrui Pharma, four immunology programs from Bristol Myers Squibb, and five additional investigational assets that will be jointly discovered and developed by the two companies. The jointly developed programs will leverage Hengrui’s proprietary discovery engine and platform technologies across several advanced therapeutic modalities.
As part of the arrangement, Bristol Myers Squibb will receive exclusive worldwide rights to Hengrui-originated products outside mainland China, Hong Kong, and Macau. Meanwhile, Hengrui will obtain exclusive rights to Bristol Myers Squibb-originated assets within those territories, while BMS retains rights in the rest of the global market.
The companies said Hengrui will take primary responsibility for early clinical development activities in order to accelerate proof-of-concept studies and speed up the advancement of the programs into later-stage development. Hengrui will also have the option to co-develop selected products and potentially participate in certain commercialization activities globally alongside Bristol Myers Squibb.
Robert Plenge, Executive Vice President and Chief Research Officer at Bristol Myers Squibb, said the collaboration reflects the company’s commitment to advancing innovative science while maintaining a disciplined approach to portfolio expansion. He noted that combining complementary capabilities across different geographic markets could help accelerate clinical development and support long-term growth.
Frank Jiang, Executive Vice President and Chief Strategy Officer of Hengrui Pharma, described the alliance as a highly synergistic partnership between two global innovators with complementary strengths. He said the agreement highlights Hengrui’s growing research and development capabilities and supports its broader strategy to expand its global presence in innovative pharmaceuticals.
Financially, the agreement includes up to $950 million in payments from Bristol Myers Squibb to Hengrui. This consists of a $600 million upfront payment, a $175 million payment on the first anniversary of the deal, and another contingent payment of $175 million scheduled for 2028.
Beyond the initial payments, the overall transaction value could reach approximately $15.2 billion if certain development, regulatory, commercial, and milestone targets are achieved across all programs. Hengrui would also be eligible to receive tiered royalties from sales of products commercialized outside its home territory.
The agreement remains subject to regulatory review under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions. Both companies expect the transaction to close during the third quarter of 2026.
The collaboration underscores the growing trend of cross-border pharmaceutical partnerships as global drugmakers seek to combine research expertise, advanced technologies, and regional development capabilities to accelerate innovation and strengthen pipelines in competitive therapeutic markets.