Jiangsu Hengrui Pharmaceuticals Out-Licenses GLP-1 Portfolio

Shanghai – May 17, 2024 – Cooley advised Jiangsu Hengrui Pharmaceuticals (Hengrui), one of the largest pharmaceutical companies in China, on its licensing of global rights (excluding Greater China) for the development, production and commercialization of three of its proprietary glucagon-like peptide-1 (GLP-1) drugs to Hercules CM Newco (Hercules), a newly established Delaware company. Hercules is funded by a $400 million investment from Bain Capital Life Sciences Fund, Atlas Venture, RTW Capital and Lyra Capital.

Partner Christina Zhang led the Cooley team advising Hengrui in the transaction.

Under the agreement terms, Hengrui will receive an upfront payment of $100 million and a near-term tech transfer milestone payment of $10 million, totaling $110 million, with the potential for clinical development and regulatory milestone payments of up to $200 million, sales milestone payments of up to $5.725 billion, and sales royalties ranging from low single digits to low double digits. As a part of the consideration for the exclusive license, Hengrui will acquire a 19.9% equity stake in Hercules.

Cooley previously supported Hengrui in its exclusive worldwide (excluding mainland China) license agreement with Merck KGaA in October 2023 and its global license agreement (excluding the Greater China region and Korea) with Elevar Therapeutics in November 2023.

About Cooley LLP

Clients partner with Cooley on transformative deals, complex IP and regulatory matters, and high-stakes litigation, where innovation meets the law.

Cooley has more than 1,300 lawyers across 19 offices in the United States, Asia and Europe, and a total workforce of nearly 3,000.

This content is provided for general informational purposes only, and your access or use of the content does not create an attorney-client relationship between you or your organization and Cooley LLP, Cooley (UK) LLP, or any other affiliated practice or entity (collectively referred to as “Cooley”). By accessing this content, you agree that the information provided does not constitute legal or other professional advice. This content is not a substitute for obtaining legal advice from a qualified attorney licensed in your jurisdiction and you should not act or refrain from acting based on this content. This content may be changed without notice. It is not guaranteed to be complete, correct or up to date, and it may not reflect the most current legal developments. Prior results do not guarantee a similar outcome. Do not send any confidential information to Cooley, as we do not have any duty to keep any information you provide to us confidential. This content may be considered Attorney Advertising and is subject to our legal notices.