ReNeuron Group has signed an exclusive licence agreement with Shanghai Fosun Pharmaceutical Industrial Development for the development, manufacture and commercialisation of ReNeuron’s CTX and hRPC cell therapy programmes in China.
Fosun Pharma is a healthcare group in China focused on the development of cell-based therapeutics. 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 activities.
Fosun Pharma has also been granted rights to manufacture the licensed products in China.
In return
ReNeuron will receive £6.0 million (US$7.9 million) on entering into the agreement, up to £6.0 million in near-term operational milestones and up to £8.0 million ($10.5 million) in future regulatory milestone payments.
Post-launch profit threshold milestone payments are due at a rate of 5% of annual net profits derived from the licensed products in the year the relevant net profit milestones are exceeded, leading to total estimated milestone payments of £80.0 million ($104.8 million) provided all milestones and profit thresholds are successfully met.
ReNeuron will also receive tiered royalties at rates between 12-14% on sales of the licensed products in the Chinese market. The company will be responsible for supplying CTX and hRPC cells to Fosun until technical transfer activities have been completed.
Yifang Wu, President & CEO of Fosun Pharma, said: “The licensed products and unique stem cell platforms will bring a lot of strategic synergies with our current business, addressing huge unmet needs in the Chinese market.
Wi continued to say that the agreement would also help enrich the company’s pipelines for severe disease medical solutions.
Olav Hellebø, CEO of ReNeuron, said: “This agreement furthers our core strategy to build shareholder value through the clinical development and commercialisation of our cell therapy programmes. China represents a significant market opportunity for our products and we look forward to working with Fosun Pharma.”