In a landmark deal for China’s biopharmaceutical sector, Pingshan-based Shenzhen Pregene Biopharma Co. Ltd. has entered into an exclusive licensing agreement with U.S.-based cell therapy leader Kite Pharma, which is valued at up to US$1.64 billion.

The agreement sets a new benchmark for Shenzhen’s biopharmaceutical industry. Featuring a substantial US$120 million upfront payment to Pregene, with the potential for an additional US$1.52 billion in milestone payments, it represents the largest-ever international partnership of its kind for a Shenzhen-based innovative drug company in both upfront fees and total transaction value.

The collaboration will focus on advancing next-generation in vivo gene editing therapies designed to target hematological and solid tumors. Under the terms of the deal, Pregene will retain development and commercial rights within China, and Kite Pharma will take the lead on development, manufacturing, and commercialization for the rest of the world.

Moving beyond traditional “license-out” models, this partnership is characterized by deep, integrated cooperation from the earliest stages of research. This structure underscores the high value international peers place on China’s innovative research and development.

“We are excited to collaborate with Kite to help advance their efforts in delivering next generation in vivo therapies to patients,” said Dr. Zhang Jishuai, co-founder and chief scientist of Pregene. “By combining Kite’s cell therapy expertise with our respective strengths at Pregene, we aim to overcome technical barriers, accelerate proof-of-concept studies, and bring transformative medicines to patients faster, especially in oncology, autoimmune diseases and other areas where innovation is urgently needed.”

A rapidly growing center for the biopharma industry, Pingshan District is home to 1,290 biopharmaceutical companies. It has attracted major domestic and international players like Sanofi Pasteur, Fosun Pharma, Snibe and Techdow. In 2024, Pingshan’s biopharmaceutical industry achieved an output value of 26.78 billion yuan.