Mesoblast (ASX:MSB) has announced a strategic alliance with one of China’s largest pharmaceutical companies, Tasly Pharmaceutical Group.
The alliance is for the development, manufacture and commercialisation in China of Mesoblast’s allogeneic mesenchymal precursor cell (MPC) product candidates MPC-150-IM for the treatment or prevention of chronic heart failure and MPC-25-IC for the treatment or prevention of acute myocardial infarction.
Under the commercial terms of the alliance, Tasly will receive exclusive rights and will fund all development, manufacturing and commercialisation activities in China for MPC-150-IM and MPC-25-IC.
Mesoblast will receive US$40 million (A$54 million) on closing. This is comprised of a US$20 million upfront technology access fee and US$20 million in an equity purchase in Mesoblast Limited at $1.86 per share. This price represents a 20 percent premium to a blended volume weighted average price calculated over three months, one month and one day.
Mesoblast will also receive US$25 million on product regulatory approvals in China, escalating royalties on net product sales, and it is eligible to receive six escalating milestone payments upon the product candidates reaching certain sales thresholds in China.
According to Mr Yan Kaijing, chairman of Tasly Pharmaceutical Group, "We are very excited to partner with Mesoblast, the premier cellular medicines company, to provide innovative products that have the potential to make a major impact on the high growth cardiovascular market in China. This aligns well with our corporate strategy to be the lead provider of therapies for patients with cardiovascular conditions in China.”
Mesoblast chief executive Dr Silviu Itescu said, “Tasly Pharmaceutical Group’s powerful combination of clinical, regulatory and manufacturing expertise, together with one of the largest commercial footprints in cardiology in China, makes it the ideal partner for Mesoblast and opens up the China market to our cardiovascular franchise.”