AstraZeneca has signed an exclusive global licensing deal with Sino Biopharmaceutical for TQC3721, an investigational inhaled dual PDE3/4 inhibitor for COPD, with $200M upfront and up to $1.9B in milestones.
Written By: Chikkula Pavan Kumar, PharmD
Reviewed By: Pharmacally Editorial Team
Sino Biopharmaceutical has entered an exclusive licensing agreement with AstraZeneca for the global development and commercialization of its investigational inhaled phosphodiesterase (PDE) 3/4 inhibitor, TQC3721, marking one of the largest respiratory licensing deals involving a Chinese biopharmaceutical company this year.
Under the agreement, Chia Tai Tianqing Pharmaceutical Group (CTTQ), a subsidiary of Sino Biopharmaceutical, granted AstraZeneca exclusive rights to develop, manufacture, and commercialize TQC3721 outside China. AstraZeneca also secured exclusive global rights to certain future development programs involving the candidate.
The deal includes a $200 million upfront payment, with Sino Biopharmaceutical eligible to receive up to $1.9 billion in additional development, regulatory, and commercial milestone payments. The company will also receive tiered royalties reaching double-digit percentages based on annual global net sales. Completion of the transaction remains subject to customary regulatory approvals and closing conditions.
Advancing a late-stage respiratory therapy
TQC3721 is an investigational inhaled dual PDE3/4 inhibitor being developed for chronic respiratory diseases, particularly chronic obstructive pulmonary disease (COPD). By simultaneously inhibiting PDE3 and PDE4, the therapy combines bronchodilator and anti-inflammatory activity, with the potential to improve lung function while reducing disease exacerbations.
The program includes both nebulized and dry powder inhaler (DPI) formulations to support treatment across different patient populations and healthcare settings.
COPD remains a leading cause of morbidity and mortality worldwide. Despite the availability of inhaled bronchodilators and corticosteroids, many patients continue to experience persistent symptoms and frequent exacerbations, highlighting the need for therapies with complementary mechanisms of action.
Phase 3 program underway in China
TQC3721 has progressed into late-stage clinical development in China. The nebulized formulation is currently being evaluated in a Phase 3 clinical trial for COPD after a Phase 2b multicenter, randomized, double-blind study demonstrated a profile consistent with potential best-in-class efficacy, according to data presented at the European Respiratory Society (ERS) Congress 2025.
The dry powder inhaler formulation is also advancing through a Phase 2 clinical trial.
If approved, TQC3721 could become the first domestically developed inhaled dual PDE3/4 inhibitor in China, expanding treatment options for patients with COPD.
Partnership strengthens global development
The collaboration combines AstraZeneca’s long-standing expertise in respiratory drug development with Sino Biopharmaceutical’s internally developed respiratory pipeline. AstraZeneca will lead development and commercialization activities outside China, while Sino Biopharmaceutical retains rights within the Chinese market.
The transaction also grants AstraZeneca exclusive global rights to selected future development programs related to TQC3721, potentially broadening the collaboration beyond the initial COPD indication.
Expanding Sino Biopharmaceutical’s global strategy
The AstraZeneca agreement represents Sino Biopharmaceutical’s second major international out-licensing transaction in 2026, following its collaboration with Sanofi announced earlier this year. The company said the partnership reflects growing international interest in its internally discovered medicines and supports its strategy of expanding global development through multinational pharmaceutical collaborations while continuing to advance innovative therapies originating in China.
Reference
VOLUNTARY ANNOUNCEMENT EXCLUSIVE LICENSE AGREEMENT FOR TQC3721 WITH ASTRAZENECA
About the Writer
Chikkula Pavan Kumar (LinkedIn), PharmD is a Doctor of Pharmacy with a keen interest in clinical pharmacy, pharmacovigilance, and evidence-based practice. In his words, he is passionate about patient safety and translating complex medical information into clear, research-driven communication.