Fosun Pharma and Expedition Therapeutics have entered into a licensing agreement, worth up to $645m, to develop, manufacture, and commercialise the former’s XH-S004.
XH-S004 is an orally administered dipeptidyl peptidase-1 (DPP-1) inhibitor, which targets respiratory diseases.
The agreement provides Expedition with rights to the small molecule candidate outside Chinese Mainland, Hong Kong SAR, and Macau SAR, where Fosun will retain its rights.
Fosun will receive an upfront payment and development milestone payments, totalling up to $120m from the US-based Expedition.
In addition, the Chinese drugmaker will receive sales milestone payments of up to $525m, contingent on XH-004’s annual net sales in the licensed territories.
Fosun chairman Chen Yuqing said: “We are very pleased to have reached this collaboration with Expedition.
“XH-S004 is an innovative drug independently developed by Fosun Pharma for the treatment of respiratory system diseases, and its unique mechanism and clinical value have been highly recognised by our partners.
“By working together with Expedition, the professional teams and rich industry experience of both parties will provide strong support for the global development and commercialisation of XH-S004, further expanding the accessibility of this product and enabling global patients to benefit from this innovative therapy as soon as possible.”
XH-S004 targets inflammatory responses by inhibiting DPP-1 and related neutrophil serine protease enzymes.
Currently, the small molecule is in Phase 2 trials in China for non-cystic fibrosis bronchiectasis and in Phase 1b trials for chronic obstructive pulmonary disease.
Expedition chairman and CEO Yi Larson said: “We are pleased to be working with Fosun Pharma, one of the leading pharmaceutical companies in China.
“XH-S004 is an exciting compound that targets neutrophilic inflammation, an important underlying driver of a number of chronic respiratory diseases.
“We look forward to partnering with Fosun Pharma in the development of XH-S004 for COPD and other neutrophilic inflammatory diseases to address the significant unmet medical need.”
Founded in March last year, Expedition is backed by US investors with significant industry experience. The company focuses on autoimmune disease therapies.
Fosun, which was established in 1994, focuses on pharmaceuticals, medical devices, and healthcare services.
Its research and development (R&D) ecosystem targets oncology and immune-inflammatory disorders, using advancements in antibody platforms, cell therapies, and small molecule programmes.
In June, Fosun entered a partnership with Teva Pharmaceutical to advance the development of the latter’s TEV-56278. This collaboration aims to enhance the clinical data generation for TEV-56278, an investigational anti-PD1-IL2 therapy created using Teva’s Attenukine technology.
