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ObsEva sells rights to fertility drug that failed clinical trial

China's Hangzhou Yuyuan Bioscience Technology Co., Ltd. agreed to exclusively develop and commercialize ObsEva SA's fertility drug nolasiban in the country.

Switzerland-based ObsEva had previously decided to discontinue the development of nolasiban after the drug failed to increase the rate of pregnancy in a late-stage study when compared to placebo. The company has now decided to sublicense nolasiban to Yuyuan, which will fund the drug's clinical development, including two studies, in China.

The companies did not disclose the financial terms of the deal but noted instead that they would seek to expand their collaboration in China on other projects. Both companies also plan to collaborate on the global development of nolasiban, but Obseva will retain worldwide rights to the product outside of China.