GSK licenses COPD blockbuster in US$12bn deal

 At the heart of the agreement with the Chinese pharmaceutical company Hengrui Pharma Co Ltd (Guadong) is HRS-9821, a Phase I COPD programme targeting the same biological mechanisms as Verona Pharma’s Ohtuvayre. In addition to HRS-9821, the licensing and development agreement includes 11 other experimental therapies, the indications and mechanisms of which have yet to be disclosed.

Ohtuvayre, MSD’s approved COPD treatment, generated US$71.3m in sales in Q1 2025 from the COPD indication alone, with significant growth potential due to its dual mechanism. This PDE3/PDE4 inhibitor alleviates both inflammation and obstruction by widening the airways. MSD is also seeking approval for additional indications including asthma (global market 2024: US$16.2bn), cystic fibrosis (2023: US$10.5bn), and bronchiectasis induced by COPD. The total global market for COPD drugs reached US$24.3bn in 2023.

Both HRS-9821 and MSD’s Ohtuvayre inhibit the PDE3 and PDE4 enzymes, which play a crucial role in the narrowing of the airways and inflammation associated with COPD. Early data suggests that HRS-9821, which GSK intends to deliver via a dry powder inhaler, could improve lung function and reduce inflammation.

Under the exclusive licensing agreement, Hengrui will take on the risky development through Phase I studies, including outside of China. GSK has the option to assume global development and marketing rights for the programmes at its discretion. For each programme, separate financial terms apply. Hengrui will be entitled to tiered royalties on worldwide sales, excluding Mainland China, Hong Kong, Macau, and Taiwan.