Sirona Biochem Corp. has entered into an exclusive licensing agreement with Wanbang Biopharmaceuticals. Sirona Biochem will provide an exclusive license to Wanbang Biopharma to develop and commercialize Sirona's anti-diabetic SGLT2 inhibitor in the People's Republic of China (PRC). In exchange for this license, Wanbang Biopharma will provide upfront and milestone payments of up to US$9.5M in addition to royalty payments for product sales in the PRC.
In return for a robust licensing, milestone and royalty agreement, Sirona Biochem has transferred the responsibility for all funding, clinical development, regulatory requirements, manufacturing, sales and marketing of its SGLT2 inhibitor in China. Wanbang Biopharma will share all data generated through its clinical studies, significantly elevating the value of Sirona's SGLT2 inhibitor for licensing in the rest of the world.
Recent transaction values for SGLT2 Inhibitors include:
- Empagliflozin, one of a two-compound licensing deal between Boehringer Ingelheim and Eli Lilly for at one time payment of EUR300 million and milestone payments of EUR625 million.
- Dapagliflozin (Forxiga®), one of a two-compound licensing deal between Bristol Myers Squibb and AstraZeneca for upfront payment of US$100 million and milestone payments of up to US$1.25 billion
- Bristol Myers Squibb and AstraZeneca expand licensing deal of dapagliflozin to include Japan; deal estimated to bring more than US$1 billion
In China alone, more than 90 million people suffer from diabetes, and this number is increasing at an alarming rate of 20% per year.
"We are proud to work with Wanbang Biopharma in the continued development of our SGLT2 inhibitor as treatment for this global epidemic." said Neil Belenkie, Chief Executive Officer of Sirona Biochem.
Source: Marketwired News
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