deals and Financings
Boehringer Ingelheim will pay $50 million upfront and as much as $680 million in milestones for exclusive rights to a novel lung cancer treatment developed by Korea's Hanmi Pharma (see story). BI will have global rights (except South Korea, China and Hong Kong) to HM61713, a novel 3rd generation EGFR targeted therapy. BI also agreed to pay tiered double-digit royalties on all sales revenues. Presumably, Hanmi, which has a strong presence in China, plans to market the drug in China itself. It was the second blockbuster out-licensing deal for Hanmi this year.
ZAI Lab, an innovative Shanghai biotech, has in-licensed global rights to a novel Sanofi (NYSE: SNY) multi-kinase inhibitor aimed at non-small cell lung cancer and other oncology indications (see story). ZAI will assume responsibility for global development, manufacturing and commercialization of the molecule. The deal calls for ZAI to pay Sanofi development and regulatory milestones, along with tiered royalties from sales, though details of the agreement were not disclosed.
Jiangsu Hengrui Medicine (SHA: 600276) in-licensed China rights to an anti-nausea/vomiting drug from Tesaro (NSDQ: TSRO) of the US (see story). The drug, rolapitant, is a neurokinin-1 (NK-1) receptor antagonist currently under NDA review at the FDA, with a PDUFA ruling expected by September 5, 2015. Hengrui will make unspecified upfront and milestone payments, plus pay royalties on net China sales of the drug. Further financial details were not disclosed.
Hutchison Chi-Med (AIM: HCM) and Mitsui have revised Mitsui's investment in Chi-Med by exchanging Mitsui's 12.2% interest in Hutchison MediPharma, the drug development arm of Chi-Med, for a 5.7% interest in the Chi-Med parent company (see story). The 5.7% stake is worth $84 million. Chi-Med owns a TCM company and a consumer health company in addition to its drug development operation. In 2010, Mitsui paid $12.5 million for a 12.2% interest in Chi-Med's drug development arm.