Licence agreement secured in China for Feraccru/Accrufer

UK-based Shield Therapeutics (LSE: STX) has entered into an exclusive licence agreement for its lead product Feraccru/Accrufer (ferric maltol) with Beijing Aosaikang Pharmaceutical (ASK Pharm) in China, Hong Kong, Macau and Taiwan.

Alongside the financial terms of the licence, the agreement sees ASK Pharm undertaking and paying for all activities to achieve marketing authorization and then commercializing Feraccru/Accrufer in the territory.

Shield will receive an upfront payment of $11.4 million and is eligible to receive a further $11.4 million upon regulatory approval of Feraccru/Accrufer in China. Shield will also receive up to $40 million in milestone payments upon the achievement of specified cumulative sales targets. For the duration of the intellectual property in the territory, Shield will receive tiered ongoing royalties of 10% or 15% of net sales of Feraccru/Accrufer. ASK Pharm will be responsible for all clinical and regulatory costs and activities as well as all manufacturing and distribution costs of goods sold in the Territory.