AstraZeneca has entered into a major drug development collaboration with China’s CSPC Pharmaceutical, committing $110 million upfront to harness artificial intelligence (AI) for the discovery of novel oral therapies targeting chronic diseases. Announced on Friday, the deal could ultimately be worth up to $5.3 billion for CSPC, including up to $1.62 billion in development milestones and as much as $3.6 billion in sales-based payments, alongside single-digit royalties on eventual product sales.
The partnership gives AstraZeneca access to CSPC’s proprietary “AI-driven, dual-engine” drug discovery platform. This technology analyzes the binding of target proteins with various compounds to identify small molecule candidates with strong development potential. The initial focus includes at least one preclinical oral therapy for immunological diseases. AstraZeneca will retain exclusive global development and commercialization rights for any licensed compounds under the agreement.
This move aligns closely with AstraZeneca’s strategic priorities, which emphasize AI integration and deeper engagement in China. At the 2025 ASCO meeting, Arun Krishna, U.S. oncology head for lung cancer, highlighted the company's three-fold use of AI—in discovery, clinical trials, and population screening—as key to accelerating development and extending AstraZeneca’s reach across the entire patient journey. “It’s important but not sufficient to just treat with our drugs,” Krishna said. “AI helps us look at the entirety of the patient pathway.”
AstraZeneca has ramped up its AI collaborations in recent years. In 2023, it struck a $42 million upfront deal with Verge Genomics to apply AI in rare disease drug discovery, potentially worth up to $840 million. In April 2025, it partnered with Tempus to develop an AI cancer model aimed at generating clinical and biological insights to inform drug development.
Despite increasing geopolitical scrutiny, AstraZeneca continues to deepen its ties with China. Earlier this year, it acquired FibroGen’s China unit for $160 million and signaled plans for a $10 billion+ investment in the country, reinforcing its long-term commitment to the region’s scientific and commercial potential.