HutchMed (China) to Receive Up to $1.13 Billion on Fruquintinib Licensing Agreement

By Anthony O. Goriainoff

HutchMed (China) Ltd. said Monday it will receive up to $1.13 billion after entering into an exclusive license agreement with Takeda Pharmaceutical Co. for the development and commercialization of Fruquintinib outside China.

The biopharmaceutical company said that under the agreement Takeda will be able to develop its colorectal cancer treatment outside mainland China, Hong Kong and Macau.

The company said the $1.13 billion includes a $400 million upfront payment on closing the agreement and up to $730 million in additional potential payments related to regulatory, development and commercial sales milestones, including royalties on net sales.

"We are pleased to be partnering with a company that shares our mission to improve treatment outcomes for cancer patients and has the scale and expertise in global drug development and commercialization to advance fruquintinib globally outside of China," Chief Executive Weiguo Su said.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

01-23-23 0350ET