AstraZeneca Signs Agreement with CSPC Pharmaceutical Group
AstraZeneca (AZN.L), has signed an AI-led research agreement with China's CSPC Pharmaceutical Group (1093.HK), worth up to $5.3 billion, which would help the Anglo-Swedish drugmaker develop therapies for chronic conditions.
The agreement represents AstraZeneca's most recent attempt to rejuvenate its operations in China, its second-largest market, which has encountered multiple obstacles, such as the arrest of its China president last year and possible penalties concerning imports.
According to Friday's agreement, the two firms will partner to identify and advance pre-clinical candidates, such as an oral small-molecule treatment for immune disorders, while CSPC will perform AI-based research in Shijiazhuang City.
"This strategic research partnership highlights our dedication to innovation in addressing chronic diseases that affect more than two billion individuals worldwide," stated AstraZeneca executive Sharon Barr.
AstraZeneca will provide CSPC with an initial payment of $110 million. The firm listed in Hong Kong can also obtain as much as $1.62 billion for achieving development milestones and $3.6 billion associated with sales-related milestones, the groups stated in individual announcements.
In October of last year, they finalized a licensing agreement where AstraZeneca committed to paying up to $1.92 billion to CSPC for the development of a candidate aimed at enhancing its cardiovascular pipeline.
AstraZeneca and CSPC possess extensive pipeline portfolios that encompass cancer therapies as well as treatments aimed at cardiovascular conditions.
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According to Morningstar analysts, around 80 percent of CSPC's overall revenue is derived from its finished drug division. Last month, the Chinese group reported that it was discussing new licensing and collaboration with third parties.