ReNeuron has signed an exclusive license agreement with Shanghai Fosun Pharmaceutical, a subsidiary of Shanghai Fosun Pharmaceutical, for the development, manufacture and commercialization of ReNeuron's CTX and hRPC cell therapy programs in China.
Fosun Pharma is a healthcare group in China with healthcare business interests worldwide. It is listed on both the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
Under the terms of the Agreement, Fosun Pharma will fully fund the development of ReNeuron's CTX and hRPC cell therapy programs in China, including clinical development and subsequent commercialization activities. Fosun Pharma has also been granted rights to manufacture the licensed products in China.
ReNeuron will receive £6.0 million (US$7.9 million) on entering into the Agreement, up to £6.0 million (US$7.9 million) in near-term operational milestones and up to £8.0 million (US$10.5 million) in future regulatory milestone payments. In addition, 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 (US$104.8 million) provided all milestones and profit thresholds are successfully met.
ReNeuron will also receive tiered royalties at rates between 12% and 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.
"We are very honored to collaborate with ReNeuron, one of the leading cell-based therapeutics companies worldwide at clinical stage,” Yifang Wu, President & Chief Executive Officer 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. Regenerative Medicine is one of the most advanced areas with various cutting-edge technologies. 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."
"We are delighted to partner our cell therapy programs with Fosun Pharma, one of China's largest and most distinguished healthcare companies. This agreement furthers our core strategy to build shareholder value through the clinical development and commercialization of our cell therapy programs,” Olav Hellebø, Chief Executive Officer of ReNeuron, said. “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."