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Shanghai Pharmaceuticals to form biopharma JV with Russia's Biocad

Shanghai Pharmaceuticals Holding Co. Ltd. is establishing a joint venture with Russia's Biocad to develop biopharmaceutical products in Greater China.

The companies will collaborate on three biosimilars — or lower-cost versions of biologic therapies — as well as three biopharmaceutical products under the joint venture, which will be called SPH-Biocad (HK) Ltd. The biosimilars will focus on cancer and autoimmune diseases.

Meanwhile, the three other biopharmaceutical products include an IL-17 antibody, for treating inflammatory diseases; a PD-1 antibody, an immune therapy for treating cancers; and a GITR antibody, for treating tumors. The IL-17 antibody was launched in Russia in 2019, while the PD-1 antibody is expected to be approved in Russia shortly.

The JV will have a registered capital of US$400 million. Shanghai Pharmaceuticals will contribute US$200.4 million in cash for the JV, accounting for 50.1% of its total equity.

Biocad will contribute US$29.94 million in cash as well as the consideration of the permanent and exclusive rights to research and development, production, sales and other commercialization rights for six biopharmaceutical products in Mainland China, Hong Kong, Macao and Taiwan — which in turn amounts to 49.9% of the JV's total equity.

Shanghai Pharmaceuticals said the cooperation with Biocad will allow it to diversify and improve its biopharmaceutical research and development pipeline and increase its financial performance.

The agreement between the two companies was signed in the presence of Russia's prime minister Dmitry Medvedev and Chinese premier Li Keqiang during the latter's official visit to Russia.