AstraZeneca on Tuesday detailed its licensing agreement with Sino Biopharmaceutical for an experimental respiratory drug, valued at up to $1.9 billion. The deal grants AstraZeneca global rights outside China to develop and commercialise the inhaled therapy.

The transaction includes an upfront payment alongside development, regulatory and commercial milestone payments. Sino Biopharma, listed in Hong Kong, will retain rights within China and is eligible for tiered royalties on future sales.

Respiratory medicine remains one of AstraZeneca's largest therapeutic areas, anchored by its Symbicort and Breztri franchises. The licensed candidate would strengthen the company's pipeline aimed at chronic obstructive pulmonary disease and severe asthma, conditions that affect hundreds of millions of patients worldwide.

Analysts at Jefferies and UBS noted that the deal reflects a broader trend of Western drugmakers licensing early-stage assets from Chinese biotechnology firms at lower cost than in-house development. The structure limits AstraZeneca's upfront risk while preserving upside if the therapy reaches the market.

AstraZeneca said it expected the candidate to enter later-stage clinical evaluation, though the company did not provide a specific timeline for regulatory filings in the United States or Europe.