By Jason Chau


Sino Biopharmaceutical has struck a licensing deal with AstraZeneca for a chronic respiratory disease treatment and obtained commercialization rights for two GSK treatments in China, as global drugmakers increasingly turn to China to bolster their product portfolios and sales.

The Chinese drugmaker on Wednesday unveiled a licensing deal for a chronic respiratory disease treatment with global pharma giant AstraZeneca that could be valued at up to $1.9 billion, sending its shares sharply higher.

Sino Biopharmaceutical said subsidiary Chia Tai Tianqing Pharmaceutical granted AstraZeneca exclusive rights to develop, manufacture and commercialize its new PDE3/4 inhibitor, TQC3721, outside China.

PDE3/4 inhibitors block specific enzymes to relax airway muscles and suppress inflammation.

As part of the deal, Sino Biopharmaceutical will receive $200 million upfront from AstraZeneca and will be eligible for milestone payments, totaling up to $1.9 billion. It is also eligible for tiered royalties of up to double-digit percentages based on the annual net sales of the inhibitors.

The AstraZeneca agreement is the second outlicensing deal Sino Biopharmaceutical has reached with a multinational drugmaker this year after its pact with Sanofi in February.

The Chinese company later Wednesday separately announced it is enhancing its partnership with British pharma major GSK by obtaining commercialization rights for two GSK respiratory drugs--Trelegy Ellipta and Anoro Ellipta--in mainland China. The firm will be responsible for the import, distribution, hospital access and promotion of the two therapies.

The deal is expected to boost its revenue and profit, and significantly accelerate its growth, it added.

Sino Biopharmaceutical's stock jumped as much as 6.8% in Hong Kong and was trading 2.1% higher at midday.

The two tie-ups come amid a wave of licensing agreements and partnerships between global biopharmaceutical companies and Chinese drugmakers, as multinational firms look to tap China's growing pipeline of innovative medicines, supported by the country's advances in biotechnology and its cost advantages in developing drugs.


Write to Jason Chau at jason.chau@wsj.com


(END) Dow Jones Newswires

07-08-26 0113ET