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AstraZeneca has acquired exclusive global rights to develop and commercialize Dizal Pharmaceutical’s marketed lung cancer drug Zegfrovy® (sunvozertinib), through an agreement that could generate up to $1.5 billion for the spinout of the pharma giant’s onetime Chinese R&D operation.

Wuxi City, China-based Dizal has inked an exclusive license agreement with AstraZeneca to expand the development of Zegfrovy into new indications beyond the one for which it has approvals in the United States and China—namely the treatment of adult patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) with EGFR exon 20 insertion mutations, whose disease has progressed on or after platinum-based chemotherapy.

Dizal has been pursuing approvals from the FDA and China’s Center for Drug Evaluation (CDE) for a new indication for Zegfrovy, as a first-line treatment for NSCLC with exon 20 insertion EGFR mutations. In May, Dizal presented at the 2026 American Society of Clinical Oncology (ASCO) Annual Meeting and simultaneously published in The New England Journal of Medicine (NEJM), positive results in the indication from its Phase III WU-KONG28 trial (NCT05668988).

In the study, Zegfrovy showed a median progression-free survival (PFS) of 10.3 months compared with 7.5 months PFS for platinum-doublet chemotherapy in untreated NSCLC patients with EGFR exon 20 insertion mutations (exon20ins).

“The efficacy of sunvozertinib was superior to that of chemotherapy as first-line treatment for advanced NSCLC with EGFR exon 20 insertions,” the researchers concluded in their study, “First-Line Sunvozertinib in NSCLC with EGFR Exon 20 Insertion Mutations,” which was published May 29 in NEJM.

Dizal also showed Zegfrovy delivering a BICR-assessed best objective response rate (BoR) of 68.1% vs. 35.4% with chemotherapy, and a median duration of response (DoR) of 11.2 months vs. 7.1 months for chemo.

Based on those results, Dizal has filed supplemental New Drug Applications (NDAs) for Zegfrovy in the first line to the FDA and China’s Center for Drug Evaluation (CDE). Both regulators have granted their Breakthrough Therapy designations to Zegfrovy in that setting.

“AstraZeneca is a leader in treating EGFR-mutated lung cancer, and we are eager to add Zegfrovy to our world-class portfolio of innovative medicines for patients whose tumors carry exon 20 insertion mutations,” Dave Fredrickson, executive vice president of AstraZeneca’s Oncology Hematology Business Unit, said in a statement. “With this agreement, we will bring a differentiated, oral targeted treatment to these patients with limited options across the globe.”

20% jump

Dizal shareholders reacted to the agreement with AstraZeneca warmly enough to send shares traded on the Shanghai Stock Exchange jumping 20%, from RMB 46.94 ($6.93) to RMB 56.33 ($8.31). But the news did not appear to wow AstraZeneca investors, as shares of the pharma giant traded on the London Stock Exchange dipped 1.95% today, from 12,610 pence to 12,364 pence. Shares traded on the New York Stock Exchange also fell 1.95% as of 2:17 pm ET, from $169.47 to $166.16.

Dizal was established in 2017 as a joint venture between AstraZeneca and China’s State Development & Investment Corp. (SDIC), with AstraZeneca spinning out the R&D operations of its China Commercial Innovation Center to Dizal as well as three preclinical candidates, one each in cardiometabolic disease, respiratory disease, and oncology, the drug that was eventually developed into Zegfrovy. Xiaolin Zhang, PhD, who headed the innovation center, was appointed Dizal’s CEO, a position he still holds.

AstraZeneca has agreed to pay Dizal $600 million upfront; up to $900 million tied to achieving development, regulatory, and sales-related milestones; plus tiered double-digit royalties on global sales of Zegfrovy. The milestone payments consist of up to $400 million in clinical development-related payments and up to $500 million in sales-related payments, Dizal disclosed in a regulatory filing to the Shanghai Stock Exchange.

In March, Dizal reported that Zegfrovy generated about RMB 576 million (about $85.057 million) in revenue last year, up 85% from 2024. Zegfrovy accounted for nearly three-fourths (72%) of Dizal’s total 2025 sales of RMB 801 million ($118.282 million).

Zegfrovy is a once-daily oral irreversible epidermal growth factor receptor (EGFR) inhibitor approved by the FDA in July 2025 based on evidence from the Phase I/II WU-KONG1B trial (NCT03974022) in patients with locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations whose disease has progressed on platinum-based chemotherapy and received Zegfrovy 200 mg once daily with food.

WU-KONG1B enrolled 202 patients with locally advanced or metastatic NSCLC with EGFR exon 20 insertion mutations who had received previous platinum-based chemotherapy. The trial was conducted at 89 sites in the United States, Argentina, Australia, Canada, China, Chile, France, Italy, Malaysia, South Korea, Spain, and Taiwan.

AstraZeneca’s licensing deal with Dizal is expected to close in the second half of this year, subject to customary closing conditions and regulatory clearances. AstraZeneca said the transaction does not impact its 2026 financial guidance to investors, which it reaffirmed on April 29 as calling for a mid-to-high single-digit percentage increase in total revenue, and a low double-digit increase in “core” earnings per share from primary ongoing business activities.

“As a leading global company with a strong lung cancer franchise, AstraZeneca will help ensure patients around the world can benefit from this innovation discovered by Dizal scientists in China,” stated Zhang.

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