AstraZeneca Deepens China Push With COPD Drug License, Lung Cancer Deal and $15bn Investment

AstraZeneca will pay a subsidiary of Sino Biopharmaceutical $200 million upfront for the rights outside of China to an experimental chronic obstructive pulmonary disease (COPD) drug, the Chinese drugmaker said Wednesday. The deal, which could be valued at up to $1.9 billion including development, regulatory and sales milestones, is the latest in a series of China-focused moves by the UK-based drugmaker.

COPD, a progressive lung disease that obstructs airflow and makes breathing difficult, was the third-leading cause of death worldwide with 3.4 million fatalities in 2023, according to the World Health Organization. The drug, known as TQC3721, is made by Sino Biopharmaceutical subsidiary Chia Tai Tianqing Pharmaceutical Group. A study of a phase II clinical trial in China for the drug showed it was "novel" and "significantly improved lung function and symptoms" when compared with a placebo. In addition to granting AstraZeneca a license to develop, manufacture, and commercialize TQC3721 outside China, the agreement covers global rights for "certain future development programmes". The deal is the Sino Biopharmaceutical subsidiary's second out-licensing transaction with a multinational pharmaceutical company this year, after it granted rights to Sanofi in March for the blood cancer drug rovadicitinib.

AstraZeneca has also agreed to pay up to $1.5bn to license global rights to Dizal Pharmaceutical's Zegfrovy (sunvozertinib), an already approved EGFR inhibitor for non-small cell lung cancer (NSCLC). AstraZeneca pays $600m upfront and up to $900m in milestone payments tied to development, regulatory and sales targets. Zegfrovy is approved in the US (accelerated approval July 2025) and China (August 2023) for adult patients with locally advanced or metastatic NSCLC carrying EGFR exon 20 insertion mutations who have progressed on platinum-based chemotherapy. The drug generated $83.4m for Dizal in 2025, an 85% year-on-year increase. A supplemental filing for first-line use has been submitted to both the FDA and China's Center for Drug Evaluation, based on Dizal's global WU-KONG28 Phase III trial, which showed Zegfrovy improved progression-free survival versus platinum-based doublet chemotherapy in first-line NSCLC with exon 20 insertion mutations. Data was presented at ASCO 2026 and published in The New England Journal of Medicine. Zegfrovy joins AstraZeneca's existing lung cancer portfolio led by Tagrisso (osimertinib), which generated around $7.3bn in 2025.

The COPD and Zegfrovy deals follow AstraZeneca's June $5.2bn CSPC Pharmaceuticals collaboration, under which AstraZeneca will hold a 49 per cent stake while CSPC owns the remaining shares. In its initial phase, the joint venture is expected to focus on manufacturing and supply of products for the global market, with plans to expand its product line in the future. AstraZeneca has also announced plans to invest US$15bn in China, deepening its presence in the country's manufacturing and research ecosystem and citing China's growing "scientific excellence". The investment will span the pharmaceutical value chain from drug discovery to commercial manufacturing, focusing particularly on cell therapies and oncology. The company plans to grow its manufacturing footprint in Beijing, Wuxi, Taizhou and Qingdao, with the programme expected to support more than 20,000 jobs across the supply chain. More than 400 cell therapies are currently in clinical trials in China. AstraZeneca recently forecast annual revenues of US$80bn by 2030 and the launch of more than 20 new medicines. Separately, Sino Biopharmaceutical is enhancing its partnership with GSK by obtaining commercialization rights for two GSK respiratory drugs -- Trelegy Ellipta and Anoro Ellipta -- in mainland China, and will be responsible for their import, distribution, hospital access and promotion.