ReNeuron Group plc ReNeuron partners with Fosun Pharma in China (6142V)
09 April 2019 - 6:50PM
UK Regulatory
TIDMRENE
RNS Number : 6142V
ReNeuron Group plc
09 April 2019
9 April 2019 AIM: RENE
ReNeuron Group plc
("ReNeuron" or the "Company")
ReNeuron partners with Fosun Pharma in China
ReNeuron licenses rights to its CTX and hRPC cell therapy
programmes to Fosun Pharma for Chinese market
ReNeuron to receive upfront, near term and estimated
success-based milestone payments of GBP80.0 million (US$104.8
million) and double-digit royalties on sales
ReNeuron Group plc (AIM: RENE), a UK-based global leader in the
development of cell-based therapeutics, is pleased to announce that
it has signed an exclusive licence agreement ("the Agreement") with
Shanghai Fosun Pharmaceutical Industrial Development Co., Ltd., a
subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd.
("Fosun Pharma"), for the development, manufacture and
commercialisation of ReNeuron's CTX and hRPC cell therapy
programmes in the People's Republic of China ("China").
Fosun Pharma is a leading healthcare group in China with
extensive healthcare business interests worldwide. It is listed on
both the Shanghai Stock Exchange and the Hong Kong Stock
Exchange.
Under the terms of the Agreement, Fosun Pharma will fully fund
the development of ReNeuron's CTX and hRPC cell therapy programmes
in China, including clinical development and subsequent
commercialisation activities. Fosun Pharma has also been granted
rights to manufacture the licensed products in China.
ReNeuron will receive GBP6.0 million (US$7.9 million) on
entering into the Agreement, up to GBP6.0 million (US$7.9 million)
in near-term operational milestones and up to GBP8.0 million
(US$10.5 million) in future regulatory milestone payments. In
addition, post-launch profit threshold milestone payments are due
at a rate of 5% of annual net profits derived from the licensed
products in the year the relevant net profit milestones are
exceeded, leading to total estimated milestone payments of GBP80.0
million (US$104.8 million) provided all milestones and profit
thresholds are successfully met.
ReNeuron will also receive tiered royalties at rates between 12%
and 14% on sales of the licensed products in the Chinese market.
The Company will be responsible for supplying CTX and hRPC cells to
Fosun until technical transfer activities have been completed.
Yifang Wu, President & Chief Executive Officer of Fosun
Pharma, said:
"We are very honored to collaborate with ReNeuron, one of the
leading cell-based therapeutics companies worldwide at clinical
stage. The licensed products and unique stem cell platforms will
bring a lot of strategic synergies with our current business,
addressing huge unmet needs in the Chinese market. Regenerative
Medicine is one of the most advanced areas with various
cutting-edge technologies. The collaboration with ReNeuron will
contribute to the strategic leading position of Fosun Pharma in
this area in China, and also help us to enrich the pipelines for
severe disease medical solutions."
Olav Hellebø, Chief Executive Officer of ReNeuron, said:
"We are delighted to partner our cell therapy programmes with
Fosun Pharma, one of China's largest and most distinguished
healthcare companies. This agreement furthers our core strategy to
build shareholder value through the clinical development and
commercialisation of our cell therapy programmes. China represents
a significant market opportunity for our products and we look
forward to working with Fosun Pharma to ultimately bring these
treatments to the many patients in China who may benefit from
them."
ENDS
This announcement contains inside information. The person
responsible for arranging for the release of this announcement on
behalf of the Company is Olav Hellebø, Chief Executive Officer.
ENQUIRIES:
ReNeuron +44 (0)20 3819 8400
Olav Hellebø, Chief Executive Officer
Michael Hunt, Chief Financial Officer
Buchanan (UK) +44 (0) 20 7466 5000
Mark Court, Sophie Wills, Tilly Abraham
Argot Partners (US) +1 212 600 1902
Stephanie Marks, Claudia Styslinger
Stifel Nicolaus Europe Limited +44 (0) 20 7710 7600
Jonathan Senior, Stewart Wallace, Ben Maddison (NOMAD and Joint Broker)
Nplus1 Singer Advisory LLP +44 (0) 20 7496 3000
Aubrey Powell, Mark Taylor (Joint Broker)
About Fosun
Fosun Pharma is a company incorporated in the People's Republic
of China, the shares of which have been listed on the Shanghai
Stock Exchange since 1998 and the Hong Kong Stock Exchange since
2012. Fosun Pharma is principally engaged in the development,
manufacture and sale of pharmaceutical products and medical
equipment, the import and export of medical equipment, healthcare
services and the provision of related and other consulting services
and investment management. Fosun Pharma always regards innovation
as the driving force for its business growth, continuously
optimising its pharmaceutical R&D system that integrates
biosimilars and innovative drugs, its innovative chemical drugs
platform, biologics platform, high-value generic drugs platform and
T cell-therapy platform, and establishing Fosun Pharma as a leading
provider of healthcare products and services.
About ReNeuron
ReNeuron is a global leader in cell-based therapeutics,
harnessing its unique stem cell technologies to develop 'off the
shelf' stem cell treatments, without the need for immunosuppressive
drugs. The Company's lead clinical-stage candidates are in
development for the blindness-causing disease, retinitis
pigmentosa, and for disability as a result of stroke. ReNeuron is
also advancing its proprietary exosome technology platform as a
potential delivery system for drugs that would otherwise be unable
to reach their site of action. ReNeuron's shares are traded on the
London AIM market under the symbol RENE.L. For further information
visit www.reneuron.com.
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END
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