AstraZeneca has entered into a significant AI-driven research partnership with China’s CSPC Pharmaceutical Group worth up to $5.3 billion. The agreement aims to advance the development of therapies targeting chronic diseases, reinforcing AstraZeneca’s commitment to innovation in its second-largest market.
Under the collaboration, CSPC will conduct AI-led research in Shijiazhuang City to discover and develop pre-clinical candidates, including a small molecule oral therapy for immunological diseases. AstraZeneca will pay CSPC an initial upfront fee of $110 million and can receive up to $1.62 billion in development milestone payments, plus an additional $3.6 billion tied to sales milestones.
This partnership follows AstraZeneca’s broader efforts to strengthen its presence in China, including a $2.5 billion investment in a new R&D hub in Beijing announced earlier this year. It also builds on recent collaborations with AI-focused companies like Immunai, Qure.ai, and Tempus AI.
The deal also grants AstraZeneca rights to exclusive licenses for drug candidates identified through the joint research. This adds to a previous licensing deal signed in October, where AstraZeneca agreed to pay up to $1.92 billion to CSPC to enhance its cardiovascular drug pipeline.
CSPC, which derives about 80% of its revenue from finished drugs, is currently exploring additional licensing and collaboration opportunities, according to Morningstar analysts.
Sharon Barr, AstraZeneca executive, highlighted the collaboration as part of the company’s commitment to tackling chronic diseases affecting over two billion people worldwide.