Shield Therapeutics PLC (LON:STX) have told the market that they have received a Chinese licence agreement for their lead products.
The firm said on Wednesday that it had reached an agree with Beijing Aosaikang Pharmaceutical Co Ltd (SHE:002755) for the development and commercialization of its Feraccru/Accrufer in China, Hong Kong, Macau and Taiwan.
Feraccru/Accrufer is a treatment for iron deficiency in adults with or without anemia.
Just one year ago, the firm saw its shares rise at it was developing its Feraccru medication.
In January 2019, Shield Therapeutics announced hat it has reported positive results from a study of an iron deficiency treatment in adults suffering from inflammatory bowel disease as shares in the company were trading almost 11.5% higher following the announcement.
At the time, Dr Mark Sampson commented “Iron deficiency is a significant and progressive issue in patients with chronic renal disease which has been challenging to treat due to poor compliance with traditional oral iron salts. These results suggest that Feraccru offers a well-tolerated and effective treatment option which can benefit patients over the long-term.”
It seems that the development and progression of the medication has been a success from todays update.
The firm said today that it will receive an initial upfront payment of $11.4 million and could receive a further $11.4 upon approval of Feraccru/Accrufer in China.
Shield Therapeutics said it also will receive up to $40 million in milestone payments upon the achievement of specified cumulative sales targets.
Beijing Aosaikang Pharmaceutical have said that they will be responsible for clinical and regulatory costs along with distribution and manufacturing costs.
Carl Sterritt, chief executive officer, said: “The market in China for novel prescription pharmaceuticals continues to grow rapidly and this agreement will mean more patients with iron deficiency will benefit from Feraccru/Accrufer therapy, enabling them to enjoy the things that make a difference in their everyday lives.”
Pharmaceutical expansion into China
Many firms have been trying to gain Chinese regulatory and marketing approvals in China to distribute their products.
Notably, AstraZeneca (LON:AZN) updated the market by saying that it had won approval in China for its Roxadust medication.
The firm said that it had reached an agreement with with Merck & Co (NYSE: MRK) on its marketing authorization from China’s National Medical Products Administration for their Lynparza drug.
Certainly, many UK and US based pharmaceutical firms are looking to swiftly move into the Chinese market before it gets saturated. However, Shield Therapeutics should be pleased as they have the backing and costs covered from a firm with reputation.
This will present a great opportunity for Shield to invest and develop their products whilst gaining Chinese recognition.
Shares in Shield Therapeutics jumped 3.41% to trade at 178p. 8/1/20 12:16BST.