Hengrui and Glenmark Strike $1.1B+ ADC Deal for Trastuzumab Rezetecan (SHR-A1811)
Hengrui Pharma signed an exclusive license deal worth up to $1.1B with Glenmark Pharmaceuticals for Trastuzumab Rezetecan (SHR-A1811), its HER2-targeted ADC. The deal underscores China’s growing global impact in ADC innovation while giving Glenmark an emerging-market oncology play.
Hengrui Pharma has signed an exclusive licensing agreement with Glenmark Specialty S.A., the oncology arm of Glenmark Pharmaceuticals, granting rights to the HER2-targeted ADC Trastuzumab Rezetecan (SHR-A1811) across most international markets. The deal, valued at up to $1.1 billion, reflects both the growing global appetite for China-developed ADCs and Hengrui’s willingness to monetize assets beyond its home market.
Deal Highlights
- Financial terms: $18 million upfront, with milestones up to $1.093 billion, plus royalties.
- Territorial scope: Glenmark gains rights across much of Asia, Latin America, Africa, and other regions, while Hengrui retains major markets including China, the U.S., Europe, and Japan.
- Strategic play: For Hengrui, the deal expands the global footprint of its ADC portfolio without diluting control in high-value territories. For Glenmark, it secures a differentiated oncology asset that could help define its oncology strategy in emerging markets.
SHR-A1811: A China-First HER2 ADC
Approved in China in May 2025 for HER2-mutant NSCLC, SHR-A1811 became the first domestically developed HER2 ADC to reach patients. Its development path has been rapid:
- Priority review: Breast cancer indication accepted by NMPA in September 2025.
- Breakthrough therapy designations: Nine tumor types in China, spanning lung, breast, gastric, colorectal, biliary tract, and gynecologic cancers.
- U.S. designation: Orphan Drug status from FDA in August 2025 for gastric/GEJ cancer when combined with adebrelimab + chemotherapy.
Why It Matters
- Globalization of Chinese ADCs: Hengrui’s platform (HRMAP®) now supports over 10 ADCs in the clinic, with six in Phase III or later. Licensing deals like this one demonstrate how Chinese innovators are transitioning from domestic champions to global contributors.
- Competitive pressure: The HER2 ADC space is already crowded, led by Enhertu (Daiichi Sankyo/AstraZeneca). SHR-A1811’s success will depend on whether it can show distinct safety or efficacy advantages across tumor types.
- Emerging-market strategy: Glenmark may lack the firepower to compete in the U.S. or Europe, but its footprint across 80+ countries could make SHR-A1811 accessible to patients in underserved regions — a niche play in the ADC market.
Outlook
This deal underscores a growing pattern: Chinese biopharma is out-licensing globally at billion-dollar scales, but often on terms that preserve domestic and major market rights. For Glenmark, the bet is that oncology innovation from China can drive growth in territories where Western big pharma has less presence. For Hengrui, the transaction de-risks global expansion while spotlighting its role as a serious ADC innovator.