AstraZeneca Partners with CSPC Pharmaceutical Group in $5.3 Billion AI-Led Research Agreement
AstraZeneca, the Anglo-Swedish pharmaceutical giant, has announced a landmark AI-led research agreement with CSPC Pharmaceutical Group, a leading Chinese pharmaceutical company, as reported by Reuters.
The deal, worth up to $5.3 billion, aims to develop therapies for chronic conditions affecting over two billion people worldwide. This collaboration underscores AstraZeneca's commitment to AI-driven research and advancing treatments for diseases with significant global impact.
Under the terms of the agreement, CSPC will conduct AI-powered research in Shijiazhuang City, focusing on discovering pre-clinical candidates for immunological diseases, including an oral therapy using small molecules.
This partnership marks AstraZeneca’s continued push to revive its business in China, its second-largest market, which has faced recent challenges, including the arrest of its China president last year.
Strategic Focus on Chronic Diseases
Sharon Barr, an executive at AstraZeneca, “This strategic research collaboration underscores our commitment to innovation to tackle chronic diseases which impact over two billion people globally.”
According to Reuters, AstraZeneca’s collaboration with CSPC follows its $2.5 billion investment in a R&D hub in Beijing, announced earlier in March. The partnership further demonstrates AstraZeneca’s increasing focus on AI, building on previous collaborations with companies like Immunai, Qure.ai, and Tempus AI.
The agreement involves an upfront fee of $110 million from AstraZeneca to CSPC, along with development milestone payments that could total up to $1.62 billion. Additionally, CSPC is eligible for up to $3.6 billion in sales-related milestone payments.
The deal comes on top of a previous October licensing agreement where AstraZeneca committed up to $1.92 billion to CSPC for a cardiovascular candidate to enhance its cardiovascular pipeline.
Also read: Tempus, AstraZeneca, and Pathos Partner to Build Multimodal AI Foundation Model
Strategic Collaboration on a Broad Pipeline Portfolio
Both companies bring extensive portfolios of therapeutic areas to the table, including oncology and cardiovascular treatments. However, CSPC derives approximately 80% of its revenue from its finished drug segment, according to Morningstar analysts.
CSPC also announced that it was in negotiations with third parties for new licensing and collaboration opportunities, indicating further expansion of its partnerships.
