Fosun Pharma (02196.HK), through its controlled subsidiary Henlius (02696.HK), announced on August 16, 2026, that it has entered into a collaboration framework agreement with Sandoz AG, a Swiss biosimilar and generics powerhouse. The two parties will establish a global strategic partnership covering up to 10 monoclonal antibody (mAb) and antibody-drug conjugate (ADC) biosimilar products, encompassing the entire value chain including CMC development, clinical development, regulatory filings, manufacturing, and commercialization.
Under the agreement, Henlius will be responsible for the development, manufacturing, and supply of the collaboration products, and will grant Sandoz an exclusive license to register and commercialize the collaboration products within the collaboration territory, as well as a co-exclusive license for development and manufacturing. Sandoz will be responsible for obtaining and maintaining marketing authorizations (MA) within the collaboration territory and will lead product commercialization. The collaboration territory covers all global markets outside mainland China, Hong Kong, Macau, and Taiwan.
The two parties have already agreed on specific commercial terms for the first three collaboration products: the cetuximab biosimilar HLX05-N, the evolocumab biosimilar HLX16, and a belimumab biosimilar. In addition, Henlius has granted Sandoz an option for a potential collaboration product — the hyaluronidase HLXTE-HAase1001.
For the first three collaboration products, Henlius is eligible to receive up to $314 million (approximately NT$10 billion) in combined upfront payments, development milestones, development budget milestones, and sales milestone payments, with actual amounts contingent on corresponding R&D, regulatory approval, and sales progress. The total expected invoiced amounts achievable in 2026 will not exceed $100.5 million (approximately NT$3 billion), equivalent to nearly HK$784 million (approximately $99.9 million).
Breaking down the payment structure further, Sandoz will pay upfront fees totaling up to $77 million (approximately NT$2.5 billion) for the first three products, development and development budget milestone payments totaling no more than $160 million (approximately NT$5 billion), sales milestone payments totaling no more than $77 million (approximately NT$2.5 billion), plus 40% of net sales or net profit from the relevant products in each country within the collaboration territory as sales royalties.
For the potential collaboration product HLXTE-HAase1001, Sandoz will pay a non-refundable option fee of $8 million (approximately NT$300 million). If Sandoz exercises the option, the two parties will separately agree on development and sales milestone payments and sales incentives.
Sandoz AG was founded in 1979, with roots tracing back to 1886, and is headquartered in Basel, Switzerland. It is a wholly-owned subsidiary of Sandoz Group AG, which is listed on the SIX Swiss Exchange (ticker: SDZ) and is primarily engaged in the R&D, manufacturing, and marketing of biosimilars and generics, with operations spanning more than 100 countries.
Henlius has previously established a collaboration with Sandoz for the commercialization of the ipilimumab biosimilar HLX13 across multiple regions worldwide. This new collaboration aims to leverage Henlius’s strengths in R&D and manufacturing, combined with Sandoz’s global leadership position and infrastructure in biosimilar commercialization, to improve the accessibility of multiple high-quality biosimilar products for patients worldwide.
This strategic collaboration represents a milestone for Henlius’s international expansion. Through its deep partnership with Sandoz, Henlius can rapidly bring its biosimilar pipeline to global markets outside China, particularly mature markets such as Europe and the United States where there is strong demand for biosimilars. For parent company Fosun Pharma, the collaboration helps continuously enhance the group’s product accessibility and influence in international markets, while providing more treatment options for patients globally.
From an industry perspective, the biosimilar market has become increasingly competitive in recent years, and partnering with international players that have mature commercialization networks has become a key pathway for Chinese biopharmaceutical companies to expand overseas. As one of the global pioneers in the biosimilar space, Sandoz’s commercialization infrastructure and market access capabilities will significantly reduce the time and cost for Henlius to independently build an overseas sales network.