BEIJING, June 16, 2025 — AstraZeneca has entered a research partnership with CSPC Pharmaceutical Group worth up to $5.3 billion in a move to strengthen its position in China and invest further in artificial intelligence for drug discovery.

The agreement, announced Friday, will support development of therapies for chronic conditions through AI-led research carried out by CSPC in Shijiazhuang City. AstraZeneca said the collaboration will focus on identifying and developing pre-clinical drug candidates, including a small molecule oral treatment for immunological diseases.

The partnership comes as AstraZeneca seeks to reset its China strategy. Once one of its fastest-growing markets, China has become a point of tension after the arrest of AstraZeneca’s China president last year and potential regulatory action tied to imports.

“This strategic research collaboration underscores our commitment to innovation to tackle chronic diseases which impact over two billion people globally,” said Sharon Barr, executive vice president of biopharmaceutical R&D at AstraZeneca.

Under the terms of the deal, AstraZeneca will pay CSPC an upfront fee of $110 million. CSPC may also receive up to $1.62 billion upon reaching development milestones and up to $3.6 billion linked to commercial performance.

This is not the first time the two companies have joined forces. Last October, AstraZeneca signed a licensing deal worth up to $1.92 billion to access a cardiovascular treatment candidate developed by CSPC.

Both companies maintain broad pipelines, including cancer and cardiovascular treatments. CSPC generates most of its revenue from finished drugs, with about 80% of its earnings tied to that segment, according to analysts at Morningstar. The company also disclosed last month that it is engaged in further licensing and collaboration discussions.

Friday’s deal gives AstraZeneca the option to secure exclusive licenses for any promising candidates identified through the research.

The agreement follows a series of AI-driven investments by AstraZeneca. In March, the company announced a $2.5 billion R&D hub in Beijing. It has also formed AI collaborations with companies including Immunai, Qure.ai and Tempus AI.

AstraZeneca’s renewed focus on China and artificial intelligence reflects its broader strategy to expand global drug development and address the growing burden of chronic disease.