Entering the second half of the year, the 'fire' of nucleic acid testing is still burning.

On July 2nd, Shiyao Group announced a cooperation, option and authorization agreement with AstraZeneca to establish a strategic research and development partnership, and to develop new small nuclear acid candidate drugs using its proprietary siRNA drug discovery platform and extrahepatic targeted delivery platform, with a total cooperation amount of up to $1.77 billion.

Compared to the past when domestic small nucleic acid enterprises mainly relied on mature clinical asset authorization for going global, Shiyao's output this time is a reusable complete drug discovery and delivery technology platform. This means that multinational pharmaceutical companies have recognized China's basic capabilities in low-level delivery of small nucleic acids and AI assisted molecular screening, and small nucleic acids have upgraded from "single product monetization" to "platform value output" when going global.

In fact, this is not the first time AstraZeneca has paid for the technology platform of stone medicine.

Since their first partnership in October 2024, the two parties have reached four major BD collaborations in less than two years. The collaboration has evolved from early single product licensing to platform level strategic cooperation, and the scope of cooperation has also expanded from small molecules and peptides to small nucleic acids.

MNCs are no longer investing heavily in the rights of a single molecule, but in the reusable technological capabilities of Chinese pharmaceutical companies. The cooperation between Chinese innovative pharmaceutical companies and multinational MNCs is entering a new stage of "early binding, risk sharing, and value co creation".

01、The technical expertise of 'atypical players'

Compared to other small nucleic acid emerging players who have stood on the BD trading table in the past, Shiyao Group, which comes from a traditional pharmaceutical company, is to some extent an "atypical face" in this field.

But Shiyao is not a novice. This veteran pharmaceutical company with nearly 30 years of history has been redefining its growth curve in recent years with a batch of new technologies and therapies. Its innovation map has extended from traditional small molecule drugs to several cutting-edge directions in the global pharmaceutical industry, covering cutting-edge technology paths such as ADC, PD-1 bispecific antibody, GLP-1, siRNA, etc.

Public information shows that Shiyao Group has established eight innovative technology platforms, including small molecule new drug screening and research and development platform, long-acting injection drug development platform, as well as antibody/fusion protein, nanomedicine, cell therapy, ADC drug, and siRNA drug technology platforms.

Among them, there are about 10 siRNA therapies under development in the field of small nucleic acid, and the fastest progressing one is SYH2053 (targeting PCSK9), which has been promoted to clinical phase III in February 2026, ranking second globally/in China, only behind Novartis Leqvio; Other pipelines such as SYH2062, SYH2068, SYH2070, SYH2061, etc. are in Phase I clinical trials.

Overall, its siRNA therapy layout covers AGT, C5, SOD1, MASP2, coagulation factor XI, and a FIC Ang2/VEGF-A small nucleic acid drug, which has established a diversified layout covering blood lipids, blood pressure, lipoprotein (a), triglycerides, and complement pathways. It is expected to create differentiated competitiveness in the field of chronic diseases with the long-term and precise therapeutic characteristics of siRNA.

After clarifying the accumulation of stone drugs in the field of small nucleic acids, it is not difficult to understand the value of this cooperation - AstraZeneca did not choose a specific pipeline, but anchored the cooperation on the siRNA drug discovery platform and extrahepatic targeted delivery platform, focusing on the reusable underlying technical capabilities of stone drugs in the field of small nucleic acids.

In terms of specific cooperation content, both parties will jointly discover and develop preclinical candidate drugs (PCC) with the potential to treat multiple indications for kidney diseases targeting two targets.

For each PCC project, AstraZeneca will have the right to choose to obtain exclusive rights to develop, produce, and commercialize globally or outside of China (as applicable). Shiyao Group will retain all rights and interests in the development, production, and commercialization of one PCC within China.

In terms of transaction amount, Shiyao will receive a down payment of $30 million and is entitled to receive up to $540 million in research and development milestone payments, up to $1.2 billion in sales milestone payments, and single digit sales commissions.

A down payment of 30 million US dollars is not considered high among similar transactions, but the milestone space of nearly 1.8 billion US dollars in the future means that the true value lies ahead. And Shiyao retains the Chinese rights of one of the PCC, which also retains the initiative for its future local commercialization.

At the same time, for Shiyao, the implementation of such transactions can not only contribute stable BD revenue and share early R&D costs, but also continue to export the credibility of its technology platform to the market - this is an important anchor point for long-term valuation.

02、Why does AZ continue to add fuel?

In terms of the overall BD rhythm of Shiyao Group, its international business development has formed a distinct feature of "releasing expectations in advance and continuously fulfilling cooperation".

On May 29, 2025, Shi Yao made a rare disclosure in its first quarter report that it is advancing three potential license out transactions with multiple multinational pharmaceutical companies, involving innovative assets such as EGFR ADC. The total amount of each potential transaction is about 5 billion US dollars, totaling about 15 billion US dollars. One of the transactions has entered the final negotiation stage and is expected to be completed in June.

This practice of proactively disclosing BD reserves before formal signing was extremely rare in the domestic innovative pharmaceutical industry at that time. In the following year, Shiyao fulfilled its previously released cooperation expectations one after another, becoming a typical case of successful realization of China's innovative drug enterprise's "predictive BD".

And among them, the cooperation with AstraZeneca is particularly noteworthy.

The origin of the cooperation between the two parties can be traced back to October 2024, when Shiyao's independently developed AI small molecule drug design platform successfully produced Lp (a) inhibitor YS2302018 and MAT2A inhibitor SYH2039. The former was authorized to AstraZeneca, and Shiyao received a down payment of $100 million, with a total transaction amount of up to $2.02 billion.

After 2025, with the addition of this small nucleic acid cooperation, the two sides have reached three more transactions:
In June 2025, Shiyao and AstraZeneca formed a strategic research and development partnership, focusing on the development of AI driven new oral small molecule candidate drugs, with a potential total transaction amount of approximately 5.33 billion US dollars;

In January 2026, the two parties further signed a strategic research and development cooperation and authorization agreement to develop innovative long-acting peptide drugs using the stone medicine long-acting delivery technology platform and peptide drug AI discovery platform. AstraZeneca paid a $1.2 billion advance payment, with a potential total transaction amount of up to $18.5 billion, setting a new record for China's biopharmaceutical external authorization transaction amount at that time;

In July 2026, the two parties once again reached a cooperation agreement on siRNA drug discovery platform and extrahepatic targeted delivery platform, with a total cooperation amount of up to 1.77 billion US dollars.
Careful review of these transactions reveals that AI capabilities have become the core benchmark for linking these four collaborations - even in this small nucleic acid transaction, the announcement specifically mentioned that these platforms rely on the group's proprietary AI molecular design model and fully automated high-throughput screening system to efficiently screen nucleic acid drug molecules with high activity and enhanced extrahepatic targeting potential.

Focusing on the development of small nucleic acids, AI intervention is changing the process of siRNA sequence design and optimization. Through machine learning model training, sequence effectiveness can be predicted and chemical modification schemes can be recommended, greatly simplifying the design cycle; It can also be used to model target mRNA, explore novel chemical modification spaces, and optimize non viral vector design at the delivery system level.
AI+small nucleic acid has become a global industry consensus, and the ability of Shiyao to implement this universal logic into concrete capabilities relies on its years of accumulation.

As one of the earliest pharmaceutical companies in China to build AI drug discovery capabilities, Shiyao established a CADD research laboratory as early as 2011, attempting to use computer-aided drug design and research. Through continuous exploration and development, from initial random screening to high-throughput screening, and then to the application of advanced technologies such as expert systems and rule optimization design, it ultimately formed an AI based resource matching acceleration system.

Its independently developed "AI engine dual wheel drive efficient drug discovery platform" utilizes AI to deeply analyze the binding mode between target proteins and compound molecules, optimize molecular structures in a targeted manner, and quickly screen for highly active and promising oral small molecule candidate drugs.

The application of AI has shortened the early detection time of new drugs by over 30% and increased the overall success rate of early screening research and development by 50% to 60%. ”Yang Hanyu, the director of Runshi Research Institute of Shiyao Group, pointed out in an interview report that AI has been applied in various stages of the company's new drug development, including small molecule screening, antibody screening, nucleic acid screening, mRNA sequence optimization, protein modification and other research and development methods.

This AI underlying capability embedded in various cutting-edge technologies ultimately becomes an important lever for BD trading. UBS evaluated in a research report in May that Shiyao Group is a pioneer in AI drug development (AIDD) among leading pharmaceutical companies, with a total transaction value of $27.7 billion, and is also the world's largest AIDD platform external licensor.

And AstraZeneca, which has cooperated for multiple rounds, has a full understanding of the technical strength and delivery capability of stone medicine - the multiple collaborations between the two sides in different drug modalities are essentially a repeated verification and confirmation of each other's ability boundaries.

From the perspective of its own layout, as AstraZeneca officially launched its "AI 2030" strategy globally in February this year, positioning AI as the core engine for achieving the 2030 corporate development vision, accelerating innovation efficiency, and upgrading the industrial system, its layout in the AI field has entered the "strategic level" stage.

AstraZeneca's core approach in the field of AI can be summarized as follows: building enterprise level AI capabilities internally and collaborating closely externally to deeply embed AI throughout the entire chain from drug discovery to commercial production.

In this context, continuing to deepen cooperation with a long-term trusted partner like Shiyao is undoubtedly the optimal strategic solution. Instead of searching, evaluating, and adapting to new partners globally, it is better to continuously invest in validated technology platforms, which not only reduces transaction risks but also shortens the time cycle from cooperation to output.

03、Early Research Collaboration Reshaps Value Division of Labor

If we look at the multiple rounds of cooperation between AstraZeneca and Shijiazhuang Pharmaceutical Group from a broader perspective, we will find that this model is not an isolated event - it is a microcosm of the accelerating global industry trend: multinational pharmaceutical enterprises are shifting from the traditional "late stage acquisition" model to a new logic of "locking early research capabilities".

Over the past decade, MNC's core strategy has been "post acquisition" - acquiring mature assets through mergers and acquisitions or licensing in the clinical or commercial stages to reduce research and development risks. However, with the increasingly fierce competition in global pipeline research, "early entry and quick locking" has become the only way to compete for scarce innovative assets.

Locking in early projects in China and establishing long-term strategic partnerships with Chinese pharmaceutical companies with platform capabilities has become a rational choice for MNCs to optimize their R&D portfolio and enhance innovation efficiency. Since the beginning of this year, multiple heavyweight transactions have confirmed this trend.

For example, in the field of small nucleic acid testing, in February of this year, Saint Yin Biotechnology reached a deal with Genentech, a subsidiary of Roche, with a potential total value of $1.7 billion. Saint Yin Biotechnology granted Genentech the exclusive global development and commercialization rights for an RNAi therapy, while continuing to focus on the early stages of research and development; Genentech will be responsible for the subsequent clinical promotion, registration application, and global commercialization.

Biopharma, such as Hengrui, has a large $15.2 billion order with Bristol Myers Squibb (BMS) to jointly promote 13 early-stage projects covering oncology, hematology, and immunology. Hengrui is responsible for early clinical development and accelerating the completion of clinical proof of concept (PoC); BMS, with its global clinical development capabilities, registered professional capabilities, and commercial scale, is responsible for the subsequent globalization promotion.

Xinda Biology has cooperated with Lilly eight times, and the binding situation between the two sides has become increasingly strengthened, which deeply verifies this logic. Among them, the potential total amount of the seventh strategic cooperation is 8.85 billion US dollars. The two sides will cooperate to lay out early targets in the field of tumor immunotherapy. Xinda Biotech will lead drug discovery to the domestic Phase II clinical concept verification stage, while Eli Lilly will lead global development and commercialization outside of Greater China.

Galaxy Securities previously analyzed in depth this new model of "early binding, risk sharing, and value co creation" in its research report, and pointed out that its core highlights are reflected in:

1. Early cooperation stage: MNC has shifted from late intervention to early lock-in, reflecting recognition of China's innovative drug companies' early research capabilities.

2. Deep binding of cooperation: The cooperation model with MNC has shifted from single product authorization to collaborating on the development of multiple early-stage pipelines using innovative technology platforms, achieving long-term global strategic cooperation.

3. Transformation of cooperation and division of labor: From MNC leading the entire process to Chinese pharmaceutical companies fully leading early research and development, MNC undertakes global late stage development, registration, and commercialization, forming an industry ecosystem of "Chinese early research+global transformation".

This type of division of labor is not complicated, and the logic behind it is very clear: with China's innovation speed and efficiency as the key anchor point, Chinese pharmaceutical companies will complete target validation and early concept validation, and multinational pharmaceutical companies will take over large-scale clinical and global markets. This collaborative structure of "originating in China and amplifying globally" is becoming one of the important paths for China's innovative drugs to go global in recent years.

In this sense, the four collaborations between Shiyao and AstraZeneca are not only a deepening of cooperation between the two companies, but also a typical example of the paradigm shift in this industry - from product authorization to platform cooperation, from single molecule to multi pipeline joint development, from each management to full process binding, each step confirms the essential changes in the relationship between MNC and Chinese innovative pharmaceutical companies.

Reference: 

1. Announcement from Shiyao Group
2. Caixin News Agency, the "turning point" for veteran pharmaceutical companies: How can Shiyao Group break out of the new curve? |Company research
3. Medical Rubik's Cube, rediscover stone medicine
4. Guojin Securities and Shiyao Group: A turning point has emerged, driven by both innovation and internationalization
5. Economic Daily, Multinational Companies in China | AstraZeneca China General Manager Lin Xiao: Joining Hands to Build an Industrial Innovation Ecosystem
6. Same expression, two major MNCs target a Chinese RNAi pharmaceutical company
7. Same freehand brushwork, a large order of 15.2 billion US dollars, big brother exploded!
8. Same freehand brushwork, Lilly, "blind investment" of 8.85 billion US dollars