Big Pharma Eyes China: J&J And Roche Reportedly In Talks For Henlius’ Experimental Cancer Drug

Johnson & Johnson and Roche are reportedly in discussions with Shanghai Henlius Biotech, a unit of Fosun Pharma, over the rights to a new cancer drug. The potential deal comes as Washington weighs whether to tighten the rules for Chinese-developed medicines.

HLX43, the cancer drug at the center of the talks, is in mid-stage trials in China. Henlius could be looking at a massive payday worth hundreds of millions upfront and potentially more if the drug shows strong results, Bloomberg reported, citing people familiar with the matter. 

However, the talks are apparently still in motion and may fall through. While J&J and Roche declined to comment, Henlius dismissed the report as inaccurate without giving details. Negotiators reportedly noted that Henlius may also seek a higher valuation as more trial data becomes available.

Last week, The New York Times reported that the Trump administration is drafting an executive order that could put Chinese drug deals under stricter review by the Committee on Foreign Investment in the U.S. The draft would also increase scrutiny of Chinese clinical trial data and raise fees for Chinese-origin medicines.

Western drugmakers have increasingly turned to China for new treatments. Pfizer and AstraZeneca are among those who have signed licensing deals to secure lower-cost experimental drugs. Analysts at Stifel estimate that by 2024, nearly a third of AbbVie’s and Merck’s external drug licenses came from Chinese biotechs, compared with about 10% just a few years earlier, according to a Seeking Alpha report. 

On Stocktwits, retail sentiment for Johnson & Johnson was ‘bearish’ on ‘normal’ message volume, while sentiment for Roche was ‘neutral’ with ‘low’ activity.

While Johnson & Johnson’s stock has risen 25.6% so far in 2025, Roche’s U.S.-listed stock has gained 20% over the same period. 

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