AstraZeneca have announced that they have entered into a research collaboration with CSPC Pharmaceutical Group, based in Shijiazhuang City, China, in a deal worth up to $5.3 billion.
The partnership would see the two companies work together to develop novel preclinical candidates to treat chronic diseases. AstraZeneca have said that they will focus on developing therapies including small molecule oral drugs for ‘high priority targets’ in immunological diseases.
Sharon Barr, Executive Vice President and Head of BioPharmaceuticals R&D at AstraZeneca said: “Forming strong collaborations allows us to leverage our complementary scientific expertise to support the rapid discovery of high-quality novel therapeutic molecules to deliver the next-generation medicines.”
CPSC will receive an upfront payment of $110 million for its research services which will be driven by the Chinese company’s AI-powered drug discovery platform. A further $1.62 billion is also up for grabs in milestone payments for development, and $3.6 billion for sales milestones.
The agreement states that AstraZeneca will have exclusive rights to develop and globally commercialise any drugs found through this partnership. Provisions also say that CPSC may see potential royalties subject to annual net sales.
AstraZeneca has been expanding its reach in China. In March, the company announced it was investing $2.5 billion for a global R&D centre in Beijing.
It could also be seen as an effort to revive its presence in the country, which is its second biggest market. Reuters reported last year that AstraZeneca have had challenges in the PRC, including the arrest of its president in China and import fines.
