The largest pharmaceutical company in Britain has signed a license agreement with a Chinese firm that could be worth up to $ 2 billion. This is to develop a drug for treating high cholesterol and cardiovascular disease. AstraZeneca entered into an exclusive agreement with CSPC Pharmaceutical Group headquartered in Hebei in north China to advance a small molecule in its early stages for patients suffering from dyslipidaemia. This condition is characterized by unhealthy blood fat levels that increase the risk of cardiovascular disease.
The licensing agreement signifies a strengthening of ties between CSPC and the Cambridge-based firm. This is the first global partnership between two companies that have worked together previously in China in lung cancer research.
AstraZeneca has announced the deal, which is the latest in a series of partnerships with AstraZeneca, the second largest economy in the world. This announcement comes as the Chinese authorities continue to detain five employees, both current and ex, for alleged illegal activities. The most valuable British public company, is now worth around £182 billion. This has been largely due to its expansion into China in the last decade, where the company has grown to become one of China’s largest multinational pharmaceutical companies, employing about 16,000 employees.
AstraZeneca’s group revenue of $45,8 billion was accounted for by 13 percent in China last year. It is the company’s second largest market, after the United States. AstraZeneca’s China headquarters was designated as its fifth strategic global hub in February, along with two other hubs located in the US, Sweden, and Cambridge.
The FTSE 100 firm said today that it would benefit from the licensing agreement with CSPC by addressing the major risk factors for chronic cardiovascular disease. AstraZeneca gains access to CSPC’s small molecule candidate designed to disrupt a lipoprotein type that is crucial in transporting cholesterol through the bloodstream.
The risk of stroke and coronary artery diseases increases when the levels of LDL cholesterol (also known as “bad cholesterol”) are high. AstraZeneca has a main therapeutic division that deals with cardiovascular disease. Its sales of $6.2 billion in the first half of the year represent almost a quarter (25,6 billion dollars) of the total group revenue. Crestor, the old blockbuster Statin, is included in these sales.
AstraZeneca intends to explore the development of CSPC’s molecule, either as a standalone or in combination with other drugs. This includes an asset from its pipeline that has recently shown encouraging results in early-stage phase 1 trials.
AstraZeneca will pay CSPC $100 million upfront. The Chinese company can also receive up to $1.9 Billion for milestones in further development and commercialisation, and tiered royalties.
Sharon Barr, AstraZeneca’s head of biopharmaceuticals and research and development, stated: “This asset could help patients better manage their dyslipidaemia, and other cardiometabolic disorders.”
“Given that there is a large unmet need and cardiovascular disease is a leading cause for death worldwide, it’s important to advance novel therapies, which can be used either alone or together, in order to address known risk factors, and improve patient care.”
AstraZeneca shares traded at £118.10, up 0.6 percent, or 72p. This puts them at a 9-percent gain for the year.
A spokesperson for AstraZeneca stated that there were no additional details regarding the detentions. A report by Bloomberg led the company to confirm that it conducted an investigation into “a small number” of its employees last month. However, they had no more information.
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