Jacobson Pharma Corp. Ltd. entered into a licensing framework agreement and a capital increase agreement with a unit of Chinese drugmaker Shanghai Fosun Pharmaceutical (Group) Co. Ltd.
The company entered the agreement through its wholly owned subsidiaries, Jacobson Medical (Hong Kong) Ltd. and Joyful Ascent Ltd.
Jacobson Pharma said the agreement will help the Hong Kong-based generic drug company and Shanghai Fosun unit Shanghai Henlius Biotech Inc. to tap into the biosimilar market in Hong Kong and certain emerging ASEAN markets.
Under the licensing framework agreement, Jacobson Medical will have an exclusive right to develop and market a Shanghai Henlius biosimilar product in Hong Kong and Macau for 10 years. The company will also get a right of first negotiation toward entering into a definitive agreement to commercialize the product in certain emerging markets within ASEAN domains.
The product, a biosimilar version of Roche Holding AG's Herceptin, has received China Food and Drug Administration's nod to enter clinical trials for breast and gastric cancer indications. The biosimilar candidate is undergoing a phase 3 trial for the breast cancer indication.
Under the capital increase agreement, Joyful Ascent has conditionally agreed to subscribe 4,376,422 shares of Shanghai Henlius out of the total of 55,434,678 additional shares at the issue price of 22.71 Chinese yuan per share in cash for a consideration of 99.4 million yuan.
As of Dec. 19, US$1 was equivalent to 6.60 Chinese yuan.