AstraZeneca has entered a strategic research collaboration with China’s CSPC Pharmaceuticals Group Limited, focusing on the discovery and development of novel oral drug candidates for various chronic diseases. The partnership aims to leverage both companies’ scientific expertise to advance preclinical molecules, including a small molecule oral therapy for immunological diseases.

CSPC Pharmaceuticals, based in Shijiazhuang City, will lead the research efforts, utilizing its AI-driven drug discovery platform to identify and optimize potential therapeutic molecules. The collaboration follows AstraZeneca’s recent $2.5 billion investment in Beijing, further solidifying its presence in China.

Under the terms of the agreement, CSPC will receive an upfront payment of $110 million. The Chinese pharmaceutical firm is also eligible for up to $1.62 billion in development milestone payments and up to $3.6 billion in sales milestone payments, in addition to potential single-digit royalties on annual net sales of any resulting products. AstraZeneca will hold options for exclusive worldwide licenses to develop and commercialize candidates identified through this collaboration.