The companies will collaborate on developing preclinical oral drug candidates targeting chronic diseases, and the research will take place at CSPC's facilities in Shijiazhuang City and will rely on the company's AI-driven drug discovery platform, AstraZeneca said in a statement. (Photo by Costfoto/NurPhoto via AP)
CSPC will receive an upfront payment of $110 million and is eligible for as much as $1.62 billion in development milestone payments and up to $3.6 billion through sales milestones, as well as single-digit royalties on future product sales, according to the statement.
AstraZeneca will have exclusive global licensing rights to selected drug candidates, the companies said.
The research will take place at CSPC's facilities in Shijiazhuang City and will rely on the company's AI-driven drug discovery platform, which helps identify drug molecules that can effectively target disease-related proteins, the statement notes.
"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," Sharon Barr, AstraZeneca's executive vice president of biopharmaceutical research and development, said in the statement.
The partnership is AstraZeneca's latest move to bolster its research and development presence in China. In March, it to establish a new life sciences hub in Beijing focused on next-generation medicines.
It is also not the first time the company has worked with CSPC, having entered into a separate partnership with CSPC in October that was aimed at commercializing cancer drugs in China. In that deal, CSPC received an upfront payment of $100 million and was eligible to receive up to $1.92 billion for further milestones, plus tiered royalties.
Friday's news came as AstraZeneca navigates the fallout from its disclosure in early November of the detention of the company's former president in China, Leon Wang. While Chinese officials have not announced charges, local media have speculated that the probe involves allegations of smuggling pharmaceuticals and data privacy violations.
In December, AstraZeneca named Iskra Reic, an existing member of the firm's senior executive team, as the new executive vice president of international operations, with oversight of China and other regions.
Cambridge, U.K.-based AstraZeneca sells its medicines in more than 125 countries. Among its other notable investments, the company announced in November a $3.5 billion investment in the U.S. that it said was focused on expanding its research and manufacturing footprint.
Counsel information for the partnership was not immediately available.
--Editing by Covey Son.
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