AstraZeneca, Sino Biopharm Ink Up to $1.9 Billion Respiratory Drug Licensing Deal

By Jason Chau

AstraZeneca struck a licensing deal for a chronic respiratory disease treatment with Sino Biopharmaceutical that could be valued at up to $1.9 billion, sending shares in the Chinese drugmaker sharply higher.

Sino Biopharmaceutical subsidiary Chia Tai Tianqing Pharmaceutical has granted AstraZeneca exclusive rights to develop, manufacture and commercialize its new PDE3/4 inhibitor, TQC3721, outside China, the Chinese company said in an exchange filing Wednesday.

PDE3/4 inhibitors block specific enzymes to relax airway muscles and suppress inflammation.

Under the terms of the deal, Sino Biopharmaceutical will receive $200 million upfront from AstraZeneca, and will be eligible for milestone payments, totaling up to $1.9 billion.

The Chinese drugmaker is also eligible to receive tiered royalties of up to double-digit percentages based on the annual net sales of the inhibitors.

Sino Biopharmaceutical's stock jumped as much as 6.8% in Hong Kong before paring about half the gains.

The AstraZeneca agreement is the second outlicensing deal Sino Biopharmaceutical has reached with a multinational drugmaker this year after its pact with Sanofi in February. The Chinese company said it is seeking to expand its global partner network.

The tie-up comes amid a wave of licensing agreements between global biopharmaceutical companies and Chinese drugmakers, as multinational firms look to tap China's growing pipeline of innovative medicines, supported by the country's advances in biotechnology and its cost advantages in developing drugs.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

July 07, 2026 23:50 ET (03:50 GMT)