Fierce Pharma Asia: Major Developments in Oncology and Workforce Changes
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This article covers significant developments in the pharmaceutical sector, including BMS's $15B deal with Hengrui, Takeda's workforce reductions, and Daiichi's oncology initiatives.
Key questions this brief answers
- What is the total value of the BMS-Hengrui partnership?
- How many positions has Takeda affected through its restructuring?
- What is Daiichi Sankyo's strategy in oncology?
- Which specific drugs are included in the BMS-Hengrui collaboration?
Bristol Myers Squibb has partnered with China's Hengrui Pharma in a deal worth up to $15.2 billion for oncology and immunology assets. Takeda is restructuring its workforce. Daiichi Sankyo continues to build its ADC pipeline.
Contents9 sections
Key Takeaways
- BMS-Hengrui Deal: BMS will pay Hengrui $600 million upfront with potential milestones reaching $15.2 billion across 13 programs in oncology, hematology, and immunology. [BMS Press Release, May 2026]
- Takeda Restructuring: Takeda's efficiency program has affected approximately 3,000 positions, targeting JPY 200 billion in annual savings through procurement optimization and R&D prioritization. [Takeda Newsroom, 2024]
- Daiichi-Merck Expansion: Daiichi Sankyo expanded its Merck partnership to include MK-6070, a DLL3-targeting T-cell engager for small cell lung cancer, with a $170 million upfront payment. [Daiichi Sankyo Press Release, August 2024]
- Clinical Pipeline: Hengrui's SHR-2554 EZH2 inhibitor is in multiple active trials including NCT03603951 for lymphoid neoplasms and NCT07175220 for non-small cell lung cancer. [ClinicalTrials.gov]
What Does the BMS-Hengrui Partnership Include?
The deal announced in May 2026 combines BMS's commercial infrastructure with Hengrui's discovery capabilities. BMS agreed to pay $600 million upfront, with additional payments of $175 million on the first and second anniversaries. The total potential value reaches $15.2 billion including option exercise fees and milestone payments.
The deal covers 13 programs across three therapeutic areas. Hengrui contributes four oncology and hematology assets, including SHR-2554. This is an investigational EZH2 inhibitor now in Phase I and Phase II trials for lymphomas and solid tumors. BMS contributes four immunology assets. The partners will jointly discover five additional programs.
Territory rights are split by origin. BMS receives exclusive rights to Hengrui-originated assets outside Greater China. Hengrui keeps exclusive rights to BMS-originated assets within China. Both parties receive tiered royalties on net sales in their respective territories.
What Clinical Trials Are Underway for SHR-2554?
Hengrui's SHR-2554 is an EZH2 inhibitor being tested across multiple cancers. The compound targets the EZH2 enzyme, which drives cancer growth when mutated or overexpressed.
Key ongoing trials include:
| Trial ID | Phase | Indication | Status |
|---|---|---|---|
| NCT03603951 | Phase 1 | Relapsed/refractory mature lymphoid neoplasms | Active, not recruiting |
| NCT07175220 | Phase 2 | Non-small cell lung cancer combinations | Recruiting |
| NCT06122389 | Phase 2 | Peripheral T-cell lymphoma vs chidamide | Recruiting |
| NCT06368167 | Phase 2 | Relapsed/refractory follicular lymphoma | Not yet recruiting |
The lymphoid neoplasms trial (NCT03603951) completes in August 2026. Results from these studies will determine if SHR-2554 moves to registration trials.
Why Is Takeda Restructuring Its Operations?
Takeda began an efficiency program in fiscal year 2024. The program targets 100 to 250 basis points of annual profit margin improvement. The company aims for 30% margins by FY2025.
The program has affected approximately 3,000 positions. Takeda spent JPY 140 billion on restructuring in FY2024, mainly for severance and reorganization. These investments have captured JPY 200 billion in annual savings.
Three pillars drive the efficiency gains. Procurement optimization reduces external spend. R&D pipeline prioritization focuses resources on the highest-value programs. Digital technology investments aim to boost productivity across the company.
How Is Daiichi Sankyo Expanding Its Oncology Pipeline?
Daiichi Sankyo is building its oncology franchise around antibody drug conjugates (ADCs) and novel immuno-oncology mechanisms. The company has partnered to speed up development and expand geographic reach.
In August 2024, Daiichi Sankyo and Merck expanded their existing collaboration to include MK-6070, an investigational delta-like ligand 3 (DLL3) targeting T-cell engager. Merck received a $170 million upfront payment. The companies will co-develop and co-commercialize the asset worldwide except in Japan, where Merck retains exclusive rights.
MK-6070 targets DLL3, a protein highly expressed in small cell lung cancer (SCLC) and neuroendocrine tumors. The FDA has granted Orphan Drug Designation for SCLC. The partners plan to test MK-6070 with ifinatamab deruxtecan (I-DXd), Daiichi's B7-H3 directed ADC also in development for SCLC.
What Are the Strategic Implications for Asia-Pacific Pharma?
These developments point to several shifts in the region's pharmaceutical sector. Western multinational companies are increasingly sourcing innovation from Chinese biotechs. Japanese manufacturers are cutting costs to fund R&D investments. ADCs and T-cell engagers are emerging as the next wave of cancer treatments.
The BMS-Hengrui deal shows that Chinese discovery platforms can produce global assets. Takeda's restructuring shows how large manufacturers balance cost cuts with pipeline investment. Daiichi's partnership strategy shows how mid-cap companies can compete through focused therapeutic expertise.
Frequently Asked Questions
What is the total value of the BMS-Hengrui partnership?
The BMS-Hengrui partnership announced in May 2026 includes a $600 million upfront payment to Hengrui, with total potential value reaching up to $15.2 billion contingent on achieving development, regulatory, and commercial milestones across 13 programs in oncology, hematology, and immunology.
How many positions has Takeda affected through its restructuring?
Takeda's enterprise-wide efficiency program has affected approximately 3,000 positions as part of its FY2024 restructuring initiative. The company aims to capture annualized savings of approximately JPY 200 billion through procurement optimization, R&D pipeline prioritization, and organizational streamlining.
What is Daiichi Sankyo's strategy in oncology?
Daiichi Sankyo is advancing its oncology portfolio through antibody drug conjugates (ADCs) and strategic partnerships. In August 2024, the company expanded its collaboration with Merck to include MK-6070, a DLL3-targeting T-cell engager for small cell lung cancer, following a $170 million upfront payment.
Which specific drugs are included in the BMS-Hengrui collaboration?
The collaboration includes SHR-2554, an investigational EZH2 inhibitor being studied in multiple clinical trials including NCT03603951 for relapsed or refractory mature lymphoid neoplasms. The partnership covers 13 total programs: four oncology/hematology assets from Hengrui, four immunology assets from BMS, and five jointly discovered programs.
Related Coverage
- Big Pharma's China Oncology Trials Amid Reduced Regulatory Scrutiny
- Innovative Oncology Pharma Companies in China: A Look Ahead
- Biomarkers and Digital Technologies Transforming Oncology in Asia
- Takeda Pharmaceutical Company Profile
Primary Sources
- Bristol Myers Squibb. "Bristol Myers Squibb and Hengrui Pharma Announce Strategic Agreements to Advance Innovative Medicines Across Oncology, Hematology and Immunology." BMS Newsroom, May 12, 2026. https://news.bms.com/news/...
- Takeda Pharmaceutical Company. "Takeda Announces Enterprise-wide Program to Support Growth and Deliver Core Operating Profit Margin Improvement." Takeda Newsroom, 2024. https://www.takeda.com/newsroom/...
- Daiichi Sankyo Co., Ltd. "Daiichi Sankyo and Merck Expand Strategic Collaboration to Include MK-6070." Daiichi Sankyo Press Release, August 6, 2024. https://www.daiichisankyo.com/files/...
- U.S. National Library of Medicine. "A Phase 1 Study of SHR2554 in Subjects With Relapsed or Refractory Mature Lymphoid Neoplasms." ClinicalTrials.gov, Identifier: NCT03603951. https://clinicaltrials.gov/study/NCT03603951
- U.S. National Library of Medicine. "Phase II Clinical Study of SHR2554 Tablets Combined With Other Anti-tumor Treatments in Non-small Cell Lung Cancer Subjects." ClinicalTrials.gov, Identifier: NCT07175220. https://clinicaltrials.gov/study/NCT07175220
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