AZ buys ex-China rights to Sino’s COPD drug for $2.1bn
AstraZeneca has moved to strengthen its respiratory pipeline with a late-stage Chinese COPD asset, striking a deal that gives it a lower-cost shot at a market MSD recently entered through its $10bn Verona Pharma acquisition.
By the numbers: UK-based AstraZeneca is paying $200 million upfront plus $1.9 billion for the PDE 3/4 inhibitor TQC3721. The deal also includes tiered royalties ranging up to double-digit percentages based on the annual net sales of TQC3721 products.
How it works: PDE 3/4 inhibitors are dual-action medications that block both Phosphodiesterase 3 and 4 enzymes. By preventing these enzymes from breaking down the chemical messenger cAMP, these drugs simultaneously relax airway muscles (bronchodilation) and reduce inflammation, making them highly effective for treating chronic respiratory diseases like COPD (Chronic Obstructive Pulmonary Disease).
Why it matters: The deal could give AZ a competitor to MSD’s own PDE 3/4 inhibitor COPD drug, Ohtuvayre (ensifentrine), which generated sales of more than half a billion dollars in 2025, and is expected to reach blockbuster-level sales following approval in June 2024.
Backstory: AZ abstained from bidding for Verona Pharma, the original developer of Ohtuvayre, which was acquired by Merck for $10 billion in August 2025. Merck was the only bidder for UK-based Verona Pharma, according to documents filed with the Securities and Exchange Commission.
- A subsidiary of Sino has advanced TQC3721 into phase 3 development in its nebulised form, while a dry powder formulation is in phase 2.
- AZ has been building strong links with China over the past decade or so, and through this deal, may have snapped up a blockbuster drug at a fraction of the price that MSD paid.
What we’re watching: On the same day, Sino Biopharmaceutical also expanded a strategic collaboration with AZ’s big UK-based rival, GSK, gaining marketing rights in China to approved COPD drugs Trelegy Ellipta (fluticasone furoate, umeclidinium, and vilanterol inhalation powder) and Anoro Ellipta (umeclidinium and vilanterol inhalation powder).
