AstraZeneca has entered into an exclusive licensing agreement with Sino Biopharmaceutical's subsidiary, Chia Tai Tianqing Pharmaceutical Group (CTTQ), to develop, manufacture and commercialize the investigational respiratory therapy TQC3721 outside China in a deal valued at up to $1.9 billion.

Under the agreement, AstraZeneca will secure exclusive rights to the phosphodiesterase 3/4 (PDE3/4) inhibitor outside China, while also obtaining exclusive worldwide rights to certain future development programmes related to the asset. 

As part of the transaction, Sino Biopharmaceutical will receive an upfront payment of $200 million and will be eligible for additional development, regulatory and commercial milestone payments that could increase the total value of the agreement to $1.9 billion.  

The Chinese drugmaker will also receive tiered royalties reaching double-digit percentages of annual net sales of TQC3721 products.

The transaction is subject to customary closing conditions, including regulatory approvals.

TQC3721 is an inhaled PDE3/4 inhibitor discovered and developed by Sino Biopharmaceutical for the treatment of chronic respiratory diseases. The therapy is being evaluated in both nebulized and dry powder inhaler formulations, with an initial focus on chronic obstructive pulmonary disease (COPD). 

According to the company, the nebulized formulation demonstrated a potentially best-in-class profile in a Phase IIb clinical trial for COPD and has now advanced into a Phase III study in China. Meanwhile, the dry powder inhaler formulation is currently being assessed in a Phase II clinical trial.

The partnership is expected to leverage AstraZeneca's global expertise in respiratory drug development and commercialization alongside Sino Biopharmaceutical's innovation capabilities to accelerate the medicine's global clinical development and expand access for patients worldwide. 

The agreement marks Sino Biopharmaceutical's second major out-licensing deal with a multinational pharmaceutical company in 2026, following its collaboration with Sanofi announced earlier this year.

For AstraZeneca, the deal further strengthens its respiratory pipeline as the company continues to expand its portfolio across chronic respiratory diseases. 

Earlier this year, AstraZeneca and its partner Daiichi Sankyo also received US FDA approval for Datroway (datopotamab deruxtecan) for the treatment of metastatic triple-negative breast cancer, underscoring the company's broader strategy of investing in innovative therapies across multiple disease areas.