Telix Pharmaceuticals (ASX:TLX) has entered a strategic commercial partnership with China Grand Pharmaceutical and Healthcare Holdings Limited (CGP) for its portfolio of Molecularly-Targeted Radiation (MTR) products.
Telix has appointed CGP as its exclusive partner for the Greater China market.
Telix said the agreement grants CGP exclusive development and commercialisation rights to its portfolio of prostate, renal and brain (glioblastoma) cancer imaging and therapeutic MTR products in the agreed territory.
Under the agreement, Telix will receive an upfront prepayment of US$25 million that will be credited against future regulatory and commercial milestone payments.
Telix could also receive up to US$225 million in regulatory and commercial milestone payments, consisting of up to US$69 million for regulatory milestones and up to US$156 million for achieving commercial milestones.
Telix will also receive program-related investment of up to US$65 million for clinical costs associated with the development of TLX591 (prostate cancer) and TLX250 (renal cancer).
It can also receive royalties from therapeutic product sales.
The partnership is for an initial term commencing on the date of the agreement and ending 10 years after the date that marketing authorisation is granted in respect of each product.
CGP will also make a simultaneous one-time strategic equity investment of US$25 million in Telix.
According to CEO Dr Chris Behrenbruch, “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 CGP to deliver our diagnostic imaging and therapeutic products to cancer patients in China."
“China Grand Pharma has a strong commitment to oncology, including radioactive products, in China and around the globe," said CGP executive deputy officer Frank Zhou.
"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, which includes mainland China, Hong Kong SAR, Macau SAR and Taiwan. We firmly believe in the potential of Telix’s product portfolio to have a significant clinical impact in China.
"It is an honour 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.”