#Shanghai #Fosun Pharma #XH-S004 #Expedition Therapeutics

Fosun Pharma's Innovative Drug XH-S004 Achieves Major Licensing Milestone

Fosun Pharma, a prominent player in the global healthcare sector, recently made headlines with its significant agreement to license its innovative drug, XH-S004, to Expedition Therapeutics. Announced on August 11, 2025, this deal stands to be worth a staggering $645 million, showcasing the potential impact of this small molecule drug on the market.

Details of the Licensing Agreement

The agreement permits Expedition Therapeutics, a biotechnology company based in Delaware, to develop, manufacture, and commercialize XH-S004 across all global regions except for the Chinese mainland, Hong Kong SAR, and Macau SAR. Fosun Pharma will retain the rights to develop and commercialize the drug within those territories.

Under the terms of this partnership, Expedition is expected to pay up to $120 million to Fosun Pharma, which includes an upfront payment as well as milestone payments linked to development progress. Furthermore, there is a potential for an additional $525 million in sales milestone payments that depend on XH-S004's annual net sales within the licensed regions.

About XH-S004 and Its Significance

XH-S004 is categorized as an orally administered dipeptidyl peptidase 1 (DPP-1) inhibitor, a novel class of therapeutic agents that have not yet been marketed worldwide. This innovative drug works by reducing inflammation and mitigating airway damage caused by infections, particularly targeting the needs of patients suffering from respiratory conditions.

Currently, XH-S004 is progressing through clinical evaluations; it is undergoing Phase II trials in China aimed at treating non-cystic fibrosis bronchiectasis, alongside Phase 1b trials for chronic obstructive pulmonary disease (COPD). The mechanism of action of XH-S004 is distinct, influencing the same pathways targeted by more conventional treatments, emphasizing its potential to fill a critical gap in the therapeutic landscape.

Quotes from Leadership

Chen Yuqing, Chairman of Fosun Pharma, expressed enthusiasm regarding the collaboration, emphasizing the strength that this partnership with Expedition Therapeutics brings to the project. He stated, _“XH-S004 is an innovative drug independently developed by Fosun Pharma for the treatment of respiratory system diseases, and its unique mechanism and clinical value have been highly recognized by our partners.”_

YI Larson, the Chairman and CEO of Expedition Therapeutics, expressed similar sentiments, noting, _