Glenmark Seals $1.1 Billion Cancer Drug Deal with China’s Hengrui, Making $18M Upfront Payment
Mumbai, September 24, 2025 — Glenmark Pharmaceuticals, through its wholly-owned subsidiary Glenmark Specialty S.A., has entered into a landmark licensing and collaboration agreement with China’s Hengrui Pharma for Trastuzumab Rezetecan (SHR-A1811), a next-generation HER2-targeting antibody-drug conjugate (ADC). The move is a core part of Glenmark’s strategy to deepen its presence in oncology, particularly in biologics and high unmet-need therapies.
Under the terms of the agreement, Glenmark Specialty S.A., a wholly owned subsidiary of Glenmark, will pay Hengrui an upfront amount of $18 million to secure exclusive rights for the development and commercialization of the drug in most parts of the world. Crucially, the license excludes major developed markets, including Mainland China, the USA, Canada, Europe, Japan, and Russia, positioning the drug for launch primarily in emerging markets where Glenmark has a strong presence.
The total potential value of the deal is substantial, with Hengrui being eligible to receive up to a staggering $1.093 billion in regulatory and commercial milestone payments, in addition to royalties based on net sales of Trastuzumab Rezetecan within the licensed territories.
A Focus on High-Value Oncology
This partnership underscores Glenmark’s accelerating strategy to pivot towards complex biologics and high-value, innovation-led therapies in oncology. Trastuzumab Rezetecan is an advanced ADC, a class of cancer drugs that precisely delivers a highly potent cytotoxic agent directly to cancer cells expressing the HER2 protein, minimizing damage to healthy tissue.
The drug, developed independently by Hengrui, is already making waves in its home market. It received approval in China in May 2025 for the treatment of adult patients with HER2-mutated non-small cell lung cancer (NSCLC) who had received prior systemic therapy. Furthermore, it is under review for a new breast cancer indication in China and has received Breakthrough Therapy Designation for nine different cancer types, highlighting its broad potential. The drug has also received Orphan Drug Designation from the US FDA for use in combination with other therapies for gastric or gastroesophageal junction adenocarcinoma.
Strategic Implications for Glenmark
For Glenmark, this licensing agreement is transformative. It immediately positions the company at the forefront of the high-growth ADC segment, allowing it to deliver a potentially best-in-class therapy to underserved geographies.
Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals, emphasized the strategic alignment, stating that the partnership “reinforces our commitment to advancing innovation in areas of significant unmet need.” Similarly, Jo Feng, President of Hengrui Pharma, noted that the collaboration is a “significant step in Hengrui’s ongoing strategy to deepen its presence in emerging markets.”
Key Facts / What We Know
- Glenmark Pharmaceuticals’ subsidiary Glenmark Specialty S.A. has entered into an exclusive license & collaboration agreement with China’s Hengrui Pharma for Trastuzumab Rezetecan (SHR-A1811).
- The deal gives Glenmark the rights to develop and commercialize the drug in many markets outside a number of excluded territories, which include Mainland China, Hong Kong, Macao, Taiwan, the USA, Canada, Europe, Japan, Russia, and several CIS countries.
- Glenmark will pay an upfront fee of USD 18 million to Hengrui.
- In addition to the upfront fee, Hengrui is eligible for regulatory and commercial milestone payments of up to USD 1.093 billion, plus royalties based on net sales in the licensed territories.
- Trastuzumab Rezetecan is a next-generation HER2-targeted antibody-drug conjugate (ADC), approved in China in May 2025 for HER2-mutated non-small cell lung cancer in patients who have had at least one prior systemic therapy. It is also under review for breast cancer in China.
- The drug recently obtained Orphan Drug Designation from the US FDA (in combination with adebrelimab + chemotherapy) for gastric or gastro-esophageal junction adenocarcinoma.
Financials & Milestones
- Upfront payment: USD 18 million to Hengrui.
- Milestone payments: Up to USD 1.093 billion in regulatory & commercial milestones.
- Royalties on net sales in licensed territories.
Regulatory & Clinical Status
Trastuzumab Rezetecan has received regulatory approval in China (May 2025) for HER2-mutated non-small cell lung cancer (NSCLC) when at least one prior therapy has been used. It is also under regulatory review in China for a breast cancer indication, with priority review status granted.
In the US, the drug recently obtained Orphan Drug Designation for gastric or gastro-esophageal junction adenocarcinoma in combination with adebrelimab + chemotherapy.
Strategic Implications
- For Glenmark, this deal is a significant push in its oncology portfolio: it moves beyond generics/biosimilars into higher-barrier biologics and complex ADCs.
- Access to underserved markets: By excluding territories where the regulatory/commercial risk is already high or where competition is stiff, Glenmark can focus on emerging markets where cancer burden is increasing and access to advanced therapies is limited.
- For Hengrui Pharma, this expands the reach of its innovation into regions beyond its home base and strengthens its licensing credentials globally.
Challenges & Potential Risks
- Regulatory hurdles: Trastuzumab Rezetecan must still clear regulatory approvals in many jurisdictions; clinical data and safety/efficacy will be under scrutiny.
- Commercial execution: Pricing, reimbursement, and market access in emerging geographies can be difficult, especially for biologics/ADCs.
- Competition: The field of HER2-targeted therapies is crowded; other ADCs (e.g., those from AstraZeneca, Roche etc.) are already in market or advanced development. Glenmark must differentiate.
Outlook
If successful, Glenmark could see strong revenue streams from these emerging markets, particularly as demand for advanced cancer therapies increases. Investors will be watching how quickly Glenmark can move Trastuzumab Rezetecan through clinical trials, regulatory approvals, and commercial launch in its licensed territories.
The deal marks a notable strengthening of ties between a leading Indian pharmaceutical company and a major Chinese innovator, signaling a global shift in the sourcing and distribution of cutting-edge cancer treatments.
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