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(Alliance News) - Shield Therapeutics PLC said Wednesday it has entered into agreement with Beijing Aosaikang Pharmaceutical Co Ltd for development and commercialization of its lead product Feraccru/Accrufer in China, Hong Kong, Macau and Taiwan.
Feraccru/Accrufer is a treatment for iron deficiency in adults with or without anemia.
The pharmaceutical company said it will receive an upfront payment of USD11.4 million and is eligible to receive a further USD11.4 million upon regulatory approval of Feraccru/Accrufer in China.
Shield Therapeutics said it also will receive up to USD40 million in milestone payments upon the achievement of specified cumulative sales targets.
For the duration of the intellectual property in China, Hong Kong, Macau and Taiwan, the company will receive tiered ongoing royalties of 10% or 15% of net sales the product, the company said.
Beijing Aosaikang Pharmaceutical will be responsible for all clinical and regulatory costs and activities as well as all manufacturing and distribution costs of products sold.
Carl Sterritt, chief executive officer, said: "The market in China for novel prescription pharmaceuticals continues to grow rapidly and this agreement will mean more patients with iron deficiency will benefit from Feraccru/Accrufer therapy, enabling them to enjoy the things that make a difference in their everyday lives."
In July last year, Shield Therapeutics had said its iron deficiency product Feraccru was approved by the US regulator, having already been approved in the EU and Switzerland.
Shield Therapeutic shares were up 4.1% in London at 180.00 pence each on Wednesday.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
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