Total transaction amount exceeds $1 billion! Frontier Biotech grants GSK global rights to two research-stage products.

International Collaboration Boosts the Small Nucleic Acid Drug Sector

On the evening of February 23, Frontier Biotech (688221) announced that on February 16, the company signed an exclusive licensing agreement with global pharmaceutical giant GSK, granting GSK worldwide rights to two of its small nucleic acid (siRNA) investigational products.

According to the agreement, Frontier Biotech will receive a $40 million upfront payment and a $13 million milestone payment in the near term, with the potential to earn up to $950 million in milestone payments during subsequent development, regulatory, and commercialization phases, bringing the total transaction value to over $1 billion. Additionally, Frontier Biotech will enjoy tiered royalties based on global net sales of the two products.

Clear Division of Responsibilities and Rights

The announcement states that among the two licensed products, one candidate has entered the Investigational New Drug (IND) application stage, while the other is in preclinical development.

Under the agreement, Frontier Biotech will be responsible for advancing one product through Phase I clinical trials in China and supporting IND-related research for the other. GSK will lead the subsequent global clinical development, registration, and commercialization efforts for both products.

Frontier Biotech noted that this collaboration will not only provide significant cash flow support to enhance core R&D investment and technological platform upgrades but also signifies international recognition of its technological strength in the small nucleic acid drug field. By leveraging GSK’s global resources and experience in clinical development and commercialization, the company aims to accelerate the internationalization of its pipeline and lay a solid foundation for future product commercialization and global partnerships.

The Rising Popularity of Small Nucleic Acid Drugs

Due to their short development cycles, broad therapeutic applications, long-lasting efficacy, and high success rates, small nucleic acid drugs have become one of the most关注热点 in the global biopharmaceutical industry in recent years. Their indications are expanding from rare genetic diseases to large-scale chronic conditions such as cardiovascular and metabolic diseases. Breakthroughs in delivery systems and frequent mergers and collaborations among major pharmaceutical companies continue to drive the sector’s enthusiasm.

Since 2026, the small nucleic acid field has seen continuous activity. For example, Shengyin Biotech has reached RNAi therapy licensing agreements with Genentech/Roche, with total transactions amounting to $1.5 billion (including a $200 million upfront and milestone payments), plus sales royalties; Rebo Biotech listed on the Hong Kong Stock Exchange, with its first-day share price rising over 41%; and China Biopharmaceutical acquired domestic siRNA biotech Hegia for 1.2 billion yuan.

Currently, domestically developed small nucleic acid drugs in China have yet to receive approval for market listing. Approved products are mainly from multinational companies, such as Novartis’s Incyte sodium and Sanofi’s Plesiran sodium.

However, several domestic companies have entered clinical stages. Hobo Pharma’s core product AHB-137 (a functional cure for hepatitis B ASO drug) has completed Phase III enrollment in China; Rebo Biotech’s pipeline covers cardiovascular, metabolic, and renal diseases, with multiple candidates in global Phase II trials; BoWang Pharma has partnered twice with Novartis, with total transactions exceeding $5.3 billion, focusing on cardiovascular and other therapeutic areas; and Yuekang Pharmaceutical has multiple siRNA drugs and mRNA vaccines in clinical trials for liver cancer, hyperlipidemia, hypertension, hepatitis B, and other diseases.

Additionally, companies like CSPC, Hengrui Medicine, Xindili, and Zhengda Tianqing are also advancing multiple pipelines into clinical stages, keeping pace with technological frontiers.

As technology matures and large pharmaceutical companies continue to invest, the application of small nucleic acid drugs for chronic disease treatment is gradually expanding from rare diseases to common conditions such as hyperlipidemia, hypertension, and weight management, promising broad industry prospects.

This partnership between Frontier Biotech and GSK not only demonstrates the company’s technological strength but also adds a new chapter to the internationalization path of Chinese small nucleic acid drug enterprises.

(Source: Shanghai Securities News)