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CSPC Pharmaceutical enters licensing deal for blood cancer drug

CSPC Pharmaceutical Group Ltd. signed a licensing and commercialization agreement to advance SCT400, Sinocelltech Ltd.'s investigational treatment for a certain type of blood cancer.

Sinocelltech is a Beijing-based biotechnology developing SCT400 in late-stage trials in China to treat non-Hodgkin lymphoma, a group of blood cancers that begin in the white blood cells called lymphocytes.

The deal grants CSPC the exclusive right to apply for SCT400's approval in China, including Hong Kong, Macau and Taiwan. The company will also own the drug's license and will be able to market SCT400 in the covered countries within a 15-year period following its regulatory approval.

Under the terms of the agreement, CSPC will give Sinocelltech up-front and development milestone payments of up to 650 million yuan, subject to the approval of SCT400 in the countries covered. The company will also make milestone payments tied to sales of the medicine, once commercialized.

The biologics license application for SCT400 is expected to be filed in the first quarter of 2019.

China-based CSPC is a pharmaceutical group engaged in the manufacturing and commercialization of innovative drugs, common generic drugs and bulk drugs.

As of Oct. 5, US$1 was equivalent to 6.87 yuan.