Sandoz and Henlius Enter License Agreement for Three Biosimilars: Global Commercialization Becomes the Focus of Cross-Border BD
License collaborations between Chinese biopharmaceutical companies and overseas pharmaceutical firms continue to be active.
In August 2026, Swiss pharmaceutical company Sandoz and Shanghai Henlius Biotech reached a collaboration agreement to license three biosimilars. According to public reports, Sandoz will acquire global commercialization rights outside of China, with the deal including an upfront payment as well as development and commercial milestones.
This transaction once again demonstrates the role of license-out deals in the internationalization strategy of Chinese pharmaceutical companies.
I. Three Biosimilars Enter the International BD System
According to public information, the collaboration involves three biosimilars targeting therapeutic areas related to cholesterol, systemic lupus erythematosus, and colorectal cancer.
The corresponding originator drugs for the collaboration products are:
- Evolocumab;
- Belimumab;
- Cetuximab.
Public reports indicate that the deal includes an upfront payment of up to $77 million, as well as development milestones of up to $160 million and commercial milestones of up to $77 million.
The specific payment amounts will depend on subsequent development and commercialization progress.
II. Chinese Companies Connect to Overseas Markets Through Regional Licensing
A key feature of this collaboration is the regional rights arrangement.
Henlius retains the rights for the Chinese market, while Sandoz acquires the commercialization rights for markets outside of China.
This regional license structure allows the asset owner to continue operating in its core market while leveraging an international partner to enter overseas markets.
For healthcare companies, this is a common international BD strategy:
Retain Core Market + License Out Overseas Markets.
III. Why Have Biosimilars Become a Key Area for Cross-Border Collaboration?
As several major biologic drugs successively face patent expiration or market competition, the biosimilar market is gaining attention from global pharmaceutical companies.
For commercial-stage companies, biosimilars can supplement their product portfolio.
For R&D-focused companies, collaborating with a partner that has a global commercialization network can reduce the need to build their own commercialization system to enter overseas markets.
Therefore, international collaboration for biosimilars involves not only the product itself but also:
- Registration;
- Manufacturing;
- Market access;
- Commercialization;
- Regional sales networks.
IV. The Value of a License Deal Cannot Be Judged by the Total Amount Alone
Healthcare license transactions typically include various payment structures.
This collaboration also includes:
- Upfront payment;
- Development milestones;
- Commercial milestones.
Therefore, the potential amount announced for the deal does not mean that the entire sum will be paid upon signing.
When analyzing a license deal, companies need to look closer at:
How much is the Upfront?
Which Milestones are triggerable?
What development costs does the partner bear?
How are Royalties structured?
Which markets are included in the licensed territory?
These factors all affect the actual economic value of the transaction.
V. International Commercialization Capability Becomes a Key Condition for BD Collaboration
For Chinese healthcare companies looking to license-out assets, they cannot just look at the size of the company when seeking partners.
They also need to consider:
- Commercialization network in the target market;
- Registration capabilities;
- Market access capabilities;
- Experience in the therapeutic area;
- Sales team;
- R&D investment capacity.
Whether the partner can truly drive the product’s commercialization is a crucial part of the long-term value of an international license transaction.
VI. International BD for Chinese Pharma Companies is Maturing
From past single-product licensing to the current design of transaction structures around regional rights, development responsibilities, and commercialization capabilities, the international BD of Chinese healthcare companies is becoming more diverse.
License-out can be one way for a company to internationalize, but it is not the only way.
Companies can also choose based on their strategic needs:
- License-out;
- Co-development;
- Co-commercialization;
- Strategic Partnership;
- Joint Venture;
- Cross-border M&A.
Different models correspond to different risk and control arrangements.
Conclusion
The collaboration between Sandoz and Henlius shows that license deals between Chinese biopharmaceutical companies and international pharmaceutical firms remain active.
For Chinese healthcare companies, the core of international BD is no longer just about finding an overseas buyer, but about designing a collaboration model around regional rights, development responsibilities, commercialization capabilities, and long-term returns.
As more innovative drugs and biosimilar companies enter the global market, license-out is likely to continue to be an important tool for the internationalization of Chinese healthcare companies.
FAQ
What is a License-out?
A license-out is when an asset owner grants another company the rights to develop or commercialize a product, technology, or rights in a specific region.
What are the main features of this collaboration?
Sandoz acquires commercialization rights outside of China, and the collaboration includes an upfront payment and subsequent development and commercial milestones.
Why are regional rights designed in license deals?
Different companies have different capabilities in R&D, registration, and commercialization in different markets. Regional licensing allows both parties to divide the market based on their respective strengths.
What metrics should be considered in a license deal?
In addition to the total transaction amount, one should also pay attention to the upfront payment, milestones, royalties, licensed territory, development responsibilities, and commercialization responsibilities.