AstraZeneca has entered a strategic research collaboration with China-based CSPC Pharmaceutical Group, aiming to co-develop novel oral therapies targeting chronic and immunological diseases, the companies announced Wednesday.

Under the agreement, CSPC will lead pre-clinical research from its Shijiazhuang City facilities using its AI-powered drug discovery platform, while AstraZeneca retains global development and commercialization rights for any candidates that emerge.

“This strategic research collaboration underscores our commitment to innovation to tackle chronic diseases that impact over two billion people globally,” said Sharon Barr, Executive Vice President of BioPharmaceuticals R&D at AstraZeneca.

The deal involves an upfront payment of $110 million to CSPC, with potential milestone payments reaching $5.2 billion — including up to $1.62 billion tied to development and $3.6 billion based on future sales. CSPC is also eligible for single-digit royalties on net product sales.