Roche Partners With China’s Hansoh in Deal That Could Top $15 Billion

Roche Holding ROP -0.21%decrease; red down pointing triangle entered into a collaboration and licensing agreement with China’s Hansoh Pharmaceutical Group, in a deal that could exceed $15 billion.

As part of the agreement, Hansoh will receive $400 million upfront, $110 million after a year and be eligible for potential payments subject to targets totaling more than $15 billion, it said Monday. Hansoh would also get royalties on potential sales if the products are commercialized, it added.

The collaboration aims to advance a portfolio of antibody-drug conjugates across multiple cancer types, including two programs from Hansoh as well as multiple others powered by its technology platform and based on drug targets proposed by Roche, Hansoh said.

Hansoh said it would be in charge of leading the early development of the programs, with Roche assuming responsibility outside China, Hong Kong, Macau and Taiwan after the completion of early-stage clinical trials.

The deal expands the relationship between the two companies and continues a dealmaking streak by the Swiss drugmaker in China.