Biopharmaceutical company JHL Biotech and Sanofi entered into a strategic alliance granting Sanofi exclusive rights to manufacture and market its own proposed biosimilar of JHL Biotech's drug Rituximab in China. Under the contract, JHL Biotech would be entitled to up to $236 million in addition to sales royalties.
According to the agreement, Sanofi will invest $80 million in newly issued JHL shares and will pay $21 million upfront for exclusive rights to the proposed biosimilar and options to certain other JHL Biotech products currently under development.
JHL Biotech will lead the development, registration and manufacturing of the biosimilar, while Sanofi will direct commercialization efforts in China.
"Today is a turning point in JHL's history," said Racho Jordanov, cofounder and CEO of JHL Biotech. "JHL was built on the foundation of world-class biologics capabilities. In our alliance with Sanofi, we are combining JHL's development and manufacturing expertise with Sanofi's strengths in commercialization. Together, we will make high-quality medicines affordable to more patients in China."
"The alliance reflects Sanofi's long-term commitment to invest in China and to provide access to high-quality therapeutics to Chinese patients," said Jean-Luc Lowinski, MD, president of Sanofi China and senior vice president of Sanofi Asia. "JHL has quickly developed leading capabilities in the development of biologics and I am confident that our alliance will positively impact the lives of patients in areas of high unmet medical needs in China."