CSPC Innovation Pharmaceutical Co.,Ltd. (ASX: 300765) has announced a significant strategic partnership.
The company's controlling subsidiary, CSPC Group Jushi Biopharmaceutical Co., Ltd., has entered into a Collaboration, Option, and License Agreement with AstraZeneca PLC (ASX: AZN) effective July 1, 2026.
The collaboration focuses on the development of novel small interfering RNA candidate drugs with extrabepatic delivery capabilities.
As part of the agreement, AstraZeneca will make an upfront payment of $30 million to Jushi Biopharmaceutical.
Further milestone payments are scheduled based on the progress of clinical development, regulatory approvals, and commercial sales of the licensed drugs within the designated region.
Should all options for both the initial and additional projects be exercised and all milestones achieved, Jushi Biopharmaceutical could receive up to $540 million in potential R&D milestone payments and up to $1.2 billion in potential sales milestone payments.
Additionally, AstraZeneca will pay single-digit royalty fees to Jushi Biopharmaceutical based on the net sales of all licensed products within the region during the applicable royalty term.
This transaction is expected to expedite the global development and commercialisation of the company's related innovative drug pipeline.
It holds significant importance for the company's strategy to deepen its global footprint and accelerate the translation of its innovative research outcomes.
The deal will also contribute to optimising the company's cash flow structure, accelerating the recovery of prior R&D investments, and providing stable funding support for the ongoing research of its future innovative drug pipeline.
This move aligns closely with the company's long-term development strategy of building a leading innovative biopharmaceutical platform and is anticipated to have a positive impact on its medium to long-term operational performance and sustainable, high-quality growth.
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