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LONDON (Alliance News) - ReNeuron Group PLC on Tuesday said it has signed an exclusive licence agreement for the development, manufacture and commercialisation of its CTX and hRPC cell therapy programmes in China.
The cell-based therapeutics company signed the deal with Shanghai Fosun Pharmaceutical Industrial Development Co Ltd, a subsidiary of Chinese healthcare company Shanghai Fosun Pharmaceutical Group Co Ltd.
Under the terms of the agreement, Fosun Pharma will fully fund the development of ReNeuron's CTX and hRPC cell therapy programmes in China, including clinical development and subsequent commercialisation.
Fosun Pharma has also been granted rights to manufacture the licensed products in China.
ReNeuron will receive GBP6.0 million on entering into the agreement, up to GBP6.0 million in near-term operational milestones and up to GBP8.0 million in future regulatory milestone payments.
In addition, post-launch profit threshold milestone payments are due at a rate of 5% of annual net profit derived from the licensed products, leading to total estimated milestone payments of GBP80.0 million.
ReNeuron will also receive tiered royalties at rates between 12% and 14% on sales of the licensed products in China, it said.
In turn, ReNeuron will be responsible for supplying CTX and hRPC cells to Fosun until technical transfer activities have been completed.
"China represents a significant market opportunity for our products and we look forward to working with Fosun Pharma to ultimately bring these treatments to the many patients in China who may benefit from them," said ReNeuron Chief Executive Olav Hellebo.
"The collaboration with ReNeuron will contribute to the strategic leading position of Fosun Pharma in this area in China, and also help us to enrich the pipelines for severe disease medical solutions," added Yifang Wu, president & CEO of Fosun Pharma.
ReNeuron shares were trading 17% higher on Tuesday at 200.31 pence each.
