Luye Pharma out-licenses promotion rights for Xuezhikang in mainland China

China-based Luye Pharma (SEHK: 2186) has entered an agreement with AstraZeneca (LSE: AZN), granting AstraZeneca China exclusive rights to promote Xuezhikang Capsules in mainland China. Luye shares closed up 5.9% at HK$5.54 by close of trading today.

This is the first time that a multinational pharmaceutical company has gained exclusive authorization in China to promote an innovative drug independently developed by a Chinese pharmaceutical company, said Luye.

But it is not the first collaboration between the two companies. Last year, Luye negotiated rights to AstraZeneca’s atypical anti-psychotic medicines Seroquel (quetiapine fumarate) and Seroquel XR in the UK, China and other international markets, including Brazil, Australia, Saudi Arabia, Mexico, South Korea, Thailand, Argentina, Malaysia and South Africa. Luye is pay up to $538 million for these rights.