ReNeuron Partners with Fosun Pharma in China
- ReNeuron licenses rights to its CTX and hRPC cell therapy programmes to Fosun Pharma for Chinese market
- ReNeuron to receive upfront, near term and estimated success-based milestone payments of £80.0 million (US$104.8 million) and double-digit royalties on sales
LONDON, April 9, 2019 /PRNewswire/ -- ReNeuron Group plc (AIM: RENE), a UK-based global leader in the development of cell-based therapeutics, is pleased to announce that it has signed an exclusive licence agreement ("the Agreement") with Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd., a subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. ("Fosun Pharma"), for the development, manufacture and commercialisation of ReNeuron's CTX and hRPC cell therapy programmes in the People's Republic of China ("China").
Fosun Pharma is a leading healthcare group in China with extensive 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 programmes in China, including clinical development and subsequent commercialisation 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.
Yifang Wu, President & Chief Executive Officer of Fosun Pharma, said:
"We are very honored to collaborate with ReNeuron, one of the leading cell-based therapeutics companies worldwide at clinical stage. 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."
Olav Hellebø, Chief Executive Officer of ReNeuron, said:
"We are delighted to partner our cell therapy programmes 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 commercialisation of our cell therapy programmes. 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."
This announcement contains inside information. The person responsible for arranging for the release of this announcement on behalf of the Company is Olav Hellebø, Chief Executive Officer.
Fosun Pharma is a company incorporated in the People's Republic of China, the shares of which have been listed on the Shanghai Stock Exchange since 1998 and the Hong Kong Stock Exchange since 2012. Fosun Pharma is principally engaged in the development, manufacture and sale of pharmaceutical products and medical equipment, the import and export of medical equipment, healthcare services and the provision of related and other consulting services and investment management. Fosun Pharma always regards innovation as the driving force for its business growth, continuously optimising its pharmaceutical R&D system that integrates biosimilars and innovative drugs, its innovative chemical drugs platform, biologics platform, high-value generic drugs platform and T cell-therapy platform, and establishing Fosun Pharma as a leading provider of healthcare products and services.
ReNeuron is a global leader in cell-based therapeutics, harnessing its unique stem cell technologies to develop 'off the shelf' stem cell treatments, without the need for immunosuppressive drugs. The Company's lead clinical-stage candidates are in development for the blindness-causing disease, retinitis pigmentosa, and for disability as a result of stroke. ReNeuron is also advancing its proprietary exosome technology platform as a potential delivery system for drugs that would otherwise be unable to reach their site of action. ReNeuron's shares are traded on the London AIM market under the symbol RENE.L. For further information visit www.reneuron.com.
SOURCE ReNeuron Group plc
Company Codes: LSE:RENE