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Fosun Pharmaceutical Group has licensed overseas rights to an innovative drug currently being developed by the Chinese pharmaceutical company to a UK biotech firm, for a total potential value of up to $675 million USD. The biotech company will make an initial payment of $25 million USD, followed by milestone payments of up to $165 million USD contingent upon the progress of clinical trials, for the development and commercialization of FXS6837 and similar drugs with the same active ingredients outside of China, the Shanghai-based company announced yesterday.
Once regulatory approval is secured, the partner will make additional milestone payments totaling $480 million USD based on annual sales figures in international markets, along with ongoing double-digit percentage royalties on net sales, Fosun Pharma stated.
FXS6837 is a small molecule inhibitor developed independently by Fosun Pharma to treat immune regulatory disorders. It is currently in Phase II clinical trials in China. As of July 31, the company has invested a total of CNY120 million (approximately $16.8 million USD) in research and development for FXS6837.
The agreement also includes a provision for the partner to transfer up to a 10% stake, valued at $5 million USD, to a Fosun Pharma subsidiary.
This partnership aims to accelerate the global clinical development and commercialization of FXS6837 and to expand Fosun Pharma’s portfolio of innovative medicines in foreign markets, the company added.
Founded in 2021, the biotech firm specializes in developing drugs for inflammatory and autoimmune diseases. Its investors include several prominent institutions from Europe and the United States.
In its latest semiannual report, Fosun Pharma posted revenue of CNY19.5 billion (around $2.7 billion USD) for the first half of the year, marking a 4.6% decline from the previous year. Revenues from the innovative medicine segment increased 14% to CNY4.3 billion (about $600 million USD), accounting for nearly 29% of the overall pharmaceutical revenue. Net profit grew 39%, reaching CNY1.7 billion during the period.
Fosun Pharma’s shares closed flat at CNY28.56 (approximately $3.99 USD) in Shanghai today, after earlier rising as much as 4%.
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