Shanghai Fosun Pharma Transfers Development Rights in New Diabetes & Cancer Therapies to Swiss-Greek Firm
On 23 October 2013, leading Chinese healthcare company Shanghai Fosun Pharmaceutical Group Co., Ltd. signed an agreement with Sellas Life Science Group, a Switzerland based Greek pharmaceutical R&D company. According to the agreement, Fosun Pharma transfers to Sellas the global rights (excluding China) in development, commercialisation, marketing and distribution of Fotagliptin Benzoate and Pan-HER Inhibitors, two novel compounds owned by Fosun Pharma's subsidiary Chongqing Fochon Pharmaceutical Co. Ltd.
Fotagliptin Benzoate is developed by Chongqing Fochon independently and has a prospect of developing into type 2 diabetes medicines, whereas Pan-HER Inhibitors, a receptor inhibitor of which Chongqing Fochon owns the proprietary IP rights, is a potential therapy for curing lung, breast and other cancers. Chongqing Fochon has filed application for international patent under the Patent Cooperation Treaty in respect of the two compounds.
The estimated total consideration for the transaction of approximately RMB3.248 billion will be paid by installment. In addition, upon the compounds obtaining relevant approvals in the US and/or Europe, Chongqing Fochon will be entitled to a 10% royalty in these regions on net revenue sales for eight years.
