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Telix Pharma Partners With China Grand Pharma for Greater China Marketing
In 2018 alone, the new diagnoses of prostate, renal, and glioblastoma cancers were approximately 100,000, 70,000, and 35,000, respectively, in China. Amongst the three cancer types, prostate cancer is the most prevalent, with an incidence of 14 in 100,000 in urban and 5 in 100,000 in rural areas. Chinese men are 2 to 7 times more likely to be diagnosed with more advanced stages of disease than western men during their first diagnosis. As for the other two cancers, renal cancer is the third most common urologic cancer, and glioblastoma cancer is the most common type of incurable, primary brain cancer in China. All three cancers remain common because of the lack of better imaging techniques and high recurrence rates with the current treatments.
Since the diagnoses and treatments of cancers have high unmet needs, on November 2nd, Australia-based Telix Pharmaceuticals announced their strategic licensing as well as exclusive product developmental and commercial partnerships with China Grand Pharmaceutical (CGP) and Healthcare Holdings for the Greater China market. On the same day, Telix shares closed 29% higher than usual, at 2.16 AUD. Telix is a clinical-stage biopharmaceutical that emphasizes developing therapeutic and diagnostic products through its Molecularly Targeted Radiation (MTR), while CGP is a diversified global pharmaceutical company.
Telix Pharmaceuticals CEO, Dr. Chris Behrenbruch, said, “Telix’s mission is to be a leading global oncology company, and China is an important future market for our products. We are pleased to be working with China Grand Pharma to deliver our diagnostic imaging and therapeutic products to cancer patients in China. Considering the successful acquisition of Sirtex Medical Limited with joint venture private equity partner CDH Genetech Limited and subsequent approval of a New Drug Application filing for SIR-Spheres® by the National Medical Products Administration (‘NMPA’) of the People’s Republic of China, we believe that China Grand Pharma possesses the technical experience and execution infrastructure to be an ideal clinical and commercial partner for Telix in China.”
China Grand Pharmaceutical and Healthcare Holdings Executive Deputy Officer, Mr. Frank Zhou concurred with Dr. Behrenbruch. “China Grand Pharma has a strong commitment to oncology, including radioactive products, in China and around the globe. Grand Pharma sees nuclear medicine as the future and has a strategy to build a suite of the world’s best products to service the Greater China Region. We firmly believe in the potential of Telix’s product portfolio to have a significant clinical impact in China. It is an honor for us to have the right to bring Telix’s unique product range to our doctors and patients with major unmet medical needs. At the same time, our close clinical involvement will help bring strength to Telix’s product development and reach. We are very excited about this long-term partnership,” he added.
Commercialization of Therapeutic & Imaging Products
Under this one-decade agreement, Telix granted CGP an exclusive commercial partnership for its core therapeutic and imaging product portfolio, including TLX250 and TLX250-CDx for renal cancer, as well as TLX591, TLX591-CDx, and TLX599-CDx for prostate cancer. CGP will pay 25 million USD (about 35 million AUD) of non-refundable upfront payment, or a one-time strategic equity investment, to Telix for any future regulatory and commercial milestone expenses.
The investment is in the form of a private placement to CGP of 20.9 million USD, such that Telix share represents a post-issue holding of 7.62% by CGP. An additional 225 million USD (about 320 million AUD) from CGP to Telix will be for the currently existing Telix therapeutic products; approximately one-third of the additional 225 million USD payment will be responsible for regulatory milestones related to the National Medical Product Administration in China, while the remaining two-thirds will be for a commercial milestone payment to Telix based upon net sales performance.
By Judy Ya-Hsuan Lin
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