Franco-Sino deal for biosimilars in China

Biopharma company JHL Biotech (TWO: 6540), which has development and manufacturing facilities in Wuhan and Taiwan, has entered into a strategic alliance to collaborate on the development and commercialization of biological therapeutics in China and with potential international expansion.

Under the agreement, French pharma major Sanofi (Euronext: SAN) will invest $80 million in newly issued JHL shares at New Taiwan $90 per share. In addition, Sanofi will make an upfront payment of $21 million to acquire exclusive rights for the proposed biosimilar of Swiss drug giant Roche's (ROG: SIX) MabThera (rituximab) and options to certain JHL pipeline products. JHL will lead the development, registration, and manufacturing activities while Sanofi will lead commercialization efforts in China. JHL is entitled to receive milestones of up to $236 million and sales royalties.

The collaboration brings together complementary capabilities of the two companies and represents a commitment to expanding patient access to affordable high quality modern therapies through local development of biologics in China.