Bristol Myers Squibb (BMS) is turning to China’s Jiangsu Hengrui Pharmaceuticals in a massive deal covering 13 preclinical and early-stage drug programs. The collaboration is valued at up to $15.2 billion, including an undisclosed upfront payment and milestone-based payments tied to development, regulatory, and commercial benchmarks. The partnership reflects BMS’s push to replenish its pipeline as blockbuster drugs like Eliquis and Opdivo face looming patent cliffs in the U.S. and other major markets.
The 13 programs span multiple therapeutic areas, though specific indications were not disclosed. Hengrui will be responsible for the initial discovery and preclinical work, while BMS will lead development and commercialization globally. The deal gives BMS options on each program, allowing it to select which assets to advance into the clinic after evaluating early data.
BMS has been aggressively rebuilding its pipeline through collaborations and acquisitions over the past year. The pharma giant faces significant revenue erosion from patents expiring on key drugs, with some analysts estimating billions in lost sales by the end of the decade. This partnership with Hengrui is one of the largest licensing deals struck with a Chinese biotech in 2025.
The deal provides Hengrui with a substantial potential payout and a pathway to global markets for its early-stage assets. For BMS, it offers a low-risk way to access a broad portfolio of drug candidates without the upfront costs of full acquisitions. However, the collaboration carries execution risk: preclinical programs historically have a high failure rate in clinical trials, and the true value of the partnership depends on BMS’s ability to select winners.
Some investors may view the deal as a signal that BMS is playing catch-up in innovation, relying on external licensing rather than internal R&D. The lack of disclosure on specific targets or mechanisms of action also makes it difficult to assess the therapeutic potential of the partnered assets. Success will hinge on BMS’s drug development expertise and whether Hengrui’s molecules can survive the transition from lab to clinic.